A local convenience store is implementing EOQ inventory policy for a brand of laundry detergent. The demand for this item is 200 bottles per month. The store pays a unit price of $8 per bottle and a fixed ordering cost of $50 per order. The annual holding cost for one unit of inventory is 25% of its unit cost.

1. What is the Economic Order Quantity (EOQ)? Please round up your answer to the nearest integer.

2. What is the total annual relevant inventory cost (i.e., the sum of holding and ordering costs) when EOQ quantity is ordered?

3. The replenishment lead time is 5 days. What is the reorder point, assuming that the store is open every day of the month (1 month = 30 days)?

5. If the company producing the detergent announced that bottles must be ordered in multiples of 50, what order quantity would you use to meet the detergent companys mandate while still minimizing total annual relevant inventory costs?

6. When forced to order in multiples of 50, what is the increase in the total annual relevant inventory cost compared to the cost you found in question 2?