Benitez Security Systems has an annual demand for a camera security system of 1500 units. The cost of the camera system is $300. Carrying cost rate is estimated at 30%, and the ordering cost is $30 per order. If the owner orders 500 she can get a 2% discount on the cost of the cameras. The company operates 300 days per year, therefore the daily demand is 5 units per day and the lead time to receive an order from the supplier is 5 days.

1.What should be their ordering amount based on EOQ?

2.What are the total costs based on EOQ?

3. What are the total costs if they take the discount?

4.Provide the optimal inventory policy:Q =?

5. R = ?