Question: 2 . Q Well , located in Guelph, is a large online retailer of refillable water bottles. Q Well operates 2 8 0 days a

2. QWell, located in Guelph, is a large online retailer of refillable water bottles. QWell operates
280 days a year and sells an average of 250 one litre water bottles a day. They order bottles from
a manufacturer in China. After ordering, bottles always arrive in exactly 18 days. Annual
holding costs per bottle are estimated to be 15% of the cost of bottles. The ordering cost is $200
per order. The cost of a one litre bottle is $4.
a. What is the optimal order quantity for QWell? What is the average inventory? What is the
expected total number of orders per year?

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