Problem 1: Economic Order Quantity Problem (8 points)

A McDonalds location uses an average of 250 hamburger patties every day of the year (assume a 365-day year). Hamburger patties are a critical inventory item, so McDonalds uses an Economic Order Quantity model to manage their inventory. The cost to place an order for patties is $200 per order and orders arrive in 4 days. McDonalds estimates it costs $0.50 per patty to hold it in inventory for a year.

1. When should units be reordered? (2 points)
2. How many patties should be ordered at one time? (2 points)
3. How many times per year will an order be placed? (you can leave this as a decimal) (2 points)
4. What is the average length of an order cycle? Your answer must be in days. (2 points)