B. Brandon recently completed a logistics management course and now realizes significant costs are associated with ordering and maintaining inventory at his distribution center. Brandon has learned that the EOQ is the replenishment logic that minimizes these costs.

Brandon has gathered relevant data to find the EOQ for measuring cups and expects to sell 50,000 measuring cups this year. Brandon acquires the measuring cups for 75 cents each from Rubbermaid. Rubbermaid charges $8 for processing each order. In addition, Brandon estimates his companys inventory carrying cost to be 12 percent annually.

Find Brandons EOQ for measuring cups. Assume that Brandon accepts ownership of products upon arrival at his DC.

Assume Brandon must arrange for inbound transportation of the measuring cups since Brandon accepts ownership of products at the suppliers shipping point. Quantities of fewer than 4,000 measuring cups cost 5 cents per unit to ship. Quantities of 4,000 and above cost 4 cents per unit to ship. Determine the difference in total costs associated when transportation costs must be considered with an EOQ of 4,000 units and the EOQ level found in part (B1)

Given the information above and the low-cost EOQ alternative determined in part (B2), use period-order-quantity logic to determine the number of orders Brandon would place each year for measuring cups and the time interval between orders.