$($a$)$ Determine the economic order quantity and total annual cost $($in $$)$ under the assumption that no backorders are permitted. $($Round your answers to two decimal places.$)$

$Q^{**}=,K$

$TC=$$$,$

$($b$)$ Using a $$45$ per$-$unit per$-$year backorder cost, determine the minimum cost inventory policy and total annual cost $($in $$)$ for the model racing cars. $($Round your answers to two decimal places.$)$

$Q^{**}=,K$

$TC=,$

$7,$ days

$($d$)$ Would you recommend a no$-$backorder or a backorder inventory policy for this product? Explain.

Yes, the maximum wait is less than a week and the backorder case has a lower cost than the EOQ case.

Yes, the maximum wait is over a week long, but the cost savings of the backorder case is large enough to justify a long

wait.

No$,$ the maximum wait is less than a week but the EOQ case has a lower cost than the backorder case.

No$,$ the maximum wait is over a week long, which does not justify the cost savings of the backorder case.

No$,$ the maximum wait is over a week long and the EOQ case has a lower cost than the backorder case.

$($e$)$ If the lead time is six days, what is the reorder point for both the no$-$backorder and backorder inventory policies? $($Round your answers to two decimal places.$)($a$)$ Determine the economic order quantity and total annual cost $($in $$)$ under the assumption that no backorders are permitted. $($Round your answers to two decimal places.$)$

$Q^{**}=,K$

$TC=$$$,$

$($b$)$ Using a $$45$ per$-$unit per$-$year backorder cost, determine the minimum cost inventory policy and total annual cost $($in $$)$ for the model racing cars. $($Round your answers to two decimal places.$)$

$Q^{**}=,K$

$TC=,$

$7,$ days

$($d$)$ Would you recommend a no$-$backorder or a backorder inventory policy for this product? Explain.

Yes, the maximum wait is less than a week and the backorder case has a lower cost than the EOQ case.

Yes, the maximum wait is over a week long, but the cost savings of the backorder case is large enough to justify a long

wait.

No$,$ the maximum wait is less than a week but the EOQ case has a lower cost than the backorder case.

No$,$ the maximum wait is over a week long, which does not justify the cost savings of the backorder case.

No$,$ the maximum wait is over a week long and the EOQ case has a lower cost than the backorder case.

$($e$)$ If the lead time is six days, what is the reorder point for both the no$-$backorder and backorder inventory policies? $($Round your answers to two decimal places.$)$