Benitez Security Systems has an annual demand for camera security systems of 1463 units. The cost of typical camera security systems is $490. The handling cost is estimated at 20% of the unit cost and the cost of ordering is $30 for each order. If the owner places orders in quantities of 250 or more, you can get a 5% discount on the cost of camera security systems. The company operates 300 days a year and the waiting time to receive an order from the supplier is 10 business days.

1. What is the quantity of the economic order (EOQ) without discount? Answer

2. What is the total annual cost (ATC) without the discount? Answer

3. What is the discounted total annual cost (ATC)? Answer 4. What is the optimal order quantity to minimize the cost of managing inventory? Answer

5. What is the ROP reordering point?