Michigan State Figurine Inc (MSF) sells crystal fugurines to spartan fans. MSF buys the figurines from a manufacturer to $10 per unit. They send orders electronically to the manufacturer, costing $20 per order and they experience a lead time of 8 days for each order to arrive from the manufacturer. Their inventory carrying cost is 20%. The average daily demand of the figurines is 20 units per day with a standard deviation of 3 units. They are open for business 250 days a year.

At the EQO, what is MSF's total cost (holding plus ordering) per year?

How much is MSF's total annual ordering cost if they order twice a year?

Over how many working days will each order (EOQ) last?

If the current ordering policy of MSF is to order twice a year, how large is the order size (Q) for this order policy?