Joes Micro (JM) needs to purchase malt for their micro-brewery operation. The supplier charges $1000 per delivery (no matter how much is delivered) and $2.00 per gallon with a lead time of 2 weeks. JM's annual holding cost per unit is 40% of the dollar value of the unit, and they use 5,000 gallons of malt per week. (Assume 50 weeks per year.) JM follows the continuous review inventory policy.

1. How many gallons of malt should JM order each time?
2. Compute JMs Reorder Point.
3. If JM places an order for 50,000 gallons, they will receive a 4% discount off the regular price of $2.00. Should they take the offer?
4. Suppose JM decided instead to follow the periodic review inventory policy with T = 4 weeks and U = 30,000 gallons. On one particular review, the inventory position was observed to be 11,000 gallons. How much should JM order on that review day?