Q1.) For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total inventory cost without material cost is $200. Holding cost as a fraction of unit cost is 20%, unit cost is $5, and fixed cost is $10.

A. What is the annual demand for this item?

1. 1000
2. 1500
3. 2000
4. 2500
5. 3000
6. None of the above (What is your answer?)

B. Reconsider the Q3, if the Lead time to receive the items is 2 weeks and company operates 40 weeks per year, what is the Reorder Point (R)?

1. 80
2. 70
3. 100
4. 120
5. 90
6. None of the above (what is your answer?)