Question: Demand for a certain electrical component is 1 0 0 0 per month. Westside incurs fixed order placement, transportation and receiving cost of $ 2

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 $2.50
Retailer has holding cost of 20%
Find number of components in each replenishment lot.
Assume 250 working days. 1.Find the optimal number of computers in each replenishment lot (Q*)?
2.What is the total cost to BestBuy?
3.What is the average flow time - in months (2 decimal places)?

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