Ray wishes to determine the optimal order quantity for its best-selling bike in his bike store. Ray pays the supplier a wholesale price of $100 each for this bike. Ray has estimated the average daily demand for this bike is 15 units. The store opens 300 days a year. The cost to carry one bike in the store for a whole year is $20. Ray has estimated that, on average, the order processing cost, i.e., ordering cost, with the bike supplier each time is $400, and it roughly takes 20 working days to receive the order from the supplier. Ray wishes to avoid the stock-out situation with a probability of 95%, and this requires Ray to carry a safety stock of 25 bikes in the store.

• Input numbers only, no symbols such as "$" is allowed
• Numbers can be in the format of either 3000 or 3,000; 0.95 or .95
• Keep two decimals if not exact, do not round. For example, 3.24923... will be kept as 3.24, but the exact value of 0.625 will be kept as 0.625

1. What is the optimal order quantity (EOQ value) that Ray should order each time from the bike supplier to minimize his long-run inventory cost?
2. What is the re-order point inventory level that Ray needs to re-order and stock up the bike?
3. Use an assumed EOQ = 500 to calculate how many times Ray needs to order from the supplier per year in order to satisfy customer demand?
4. Use an assumed EOQ = 500 to calculate what is the average inventory of the bike in the store?
5. What is the bike store's annual inventory purchase cost?
6. Use an assumed EOQ = 500 to calculate what is the bike store's annual inventory ordering cost?
7. Use an assumed EOQ = 500 to calculate what is the bike store's annual inventory holding cost?

Please number the answers