Demand for a certain electrical component is $1000$ per month.

Westside incurs fixed order placement, transportation and receiving cost of $$25$ each time order is placed

Each component costs Westside $$2\mathrm{.}50$

Retailer has holding cost of $20\%$

Find number of components in each replenishment lot.

Assume $250$ working days. $1.$As part of its initiative to implement just$-$in$-$time $($JIT$)$ manufacturing$$BestBuy$$has reduced the number of computers in each order to $200$ units, what should the corresponding optimal order cost be$?$

$2.$What is the revised Total Cost if the optimal order size is scaled to a more convenient size of $1100?$

$3.$Should$$BestBuy$$go with the more convenient lot size of $1100?$