d$.(10$ points$)$ Suppose your management has indicated that they would be willing to live with an

inventory policy that yields an average of $625$ units short year. What would be the reorder point

that would yield those results?

e$.(20$ points$)$ Suppose the supplier has offered a quantity discount schedule for the item in question, as

follows. If you order at least $400$ units at a time, but less than $1500$ units, the price drops to $$119\mathrm{.}00$

per unit. If between $1500$ and $2499\mathrm{.}99$ units $($inclusive$)$ are ordered, the price is $$118\mathrm{.}00$ each. If at

least $2500$ are ordered, the price drops to $$117\mathrm{.}00$ each. If less than $400$ units are ordered, the base

price of $$120$ still applies. Determine what the order quantity would be with the quantity discounts,

determine how the reorder point would change $($if indeed it would; by the way, choose the quantity

first, then determine the reorder point$),$ and determine the total cost of the new plan. $($Note that

this question does not assume the management supposition in part $($d$)$ above.$)$