Question: 25 points) Hideley has a product for which the assumptions of the inventory model with shortages are valid. Demand for the product is 2,000 units

25 points) Hideley has a product for which the assumptions of the inventory model with shortages are valid. Demand for the product is 2,000 units per year. The inventory holding cost rate is 20% per year. The product costs Hideley $50 to purchase. The ordering cost is $25 per order. The annual shortage cost is estimated to be $50 per unit per year. Hideley operates 250 days per year.

Optimal Order Policy=109.54

Optimal Shortage=18.26

Maximum Inventory=91.28

Stockholding Cost=380.32

Backorder Cost=76.10

Find the ordering cost.
Find the Total Annual Cost.
What is the cycle time?
What is the duration of a positive inventory in each cycle?
How long is the duration of the stock-out in each cycle?

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