Question: Mike s Pharmacy has an expected annual demand for a leading pain reliever X . The pharmacy keeps several brand, however, its biggest seller is

Mikes Pharmacy has an expected annual demand for a leading pain reliever X. The pharmacy keeps several brand, however, its biggest seller is pain reliever X which costs $ 3.00 per box. The pharmacy wants to determine the optimal order size and total inventory cost for this pain reliever X given an estimated demand of 900 boxes per month, an annual carrying cost of 25 percent, and an ordering cost of $ 150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle time) given that the pain reliever is open 302 days per year.

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