1. A printer is offered by Technomax Computer Store for $200. The expected yearly demand for this is 600 units, and demand for it is year-round. While the cost of ordering is $60 every order, the cost of storing is $20 per unit per year. Currently, the business places orders 12 times annually (50 units each time). There are 250 working days in a year, with a 10-day lead-time.

1. Given the current policy of ordering 50 units at a time, what is the total inventory cost (i.e. the total of the annual ordering cost and the annual holding cost)?
2. Given the current policy of ordering 50 units at a time, what would be the

expected number of orders that will be placed per year?

3. Given the current policy of ordering 50 units at a time, what would be the

expected time between orders?

4. Calculate the Economic Order Quantity (EOQ)
5. If the company used the absolute best inventory policy (i.e. the Economic Order Quantity), what would the total inventory cost (i.e. the total of the annual ordering cost and the annual holding cost)?
6. If the company used the absolute best inventory policy (i.e. the Economic Order Quantity), what would be the expected number of orders that will be placed per year?
7. If the company used the absolute best inventory policy (i.e. the Economic Order Quantity), what would be the expected time between orders that will be placed per year?
8. Should the company change its current policy of 50 units at a time? Why?
9. What is the reorder point?