ShreCom is a computer retail store specializing in sales and service of computing devices. Past information indicates that the demand rate for the computing devices is constant. Annual demand is forecasted to be 8,100. It is further estimated that the holding cost is 5 percent of the cost of the computing device ($500 per set), and the ordering cost is $72 per order. Lead time is 1 dayand the store is open 300 days per year. Analyze the inventory system for ShreCom store.

Please answer the following question.

1)Should ShreCom employ EOQ model? Why or Why not?

2)S = ?

3)H = ?

4)D= the annual demand = ?

5)Daily demand rate = ?

6)Working days in one year = ?

7)Lead time = ?

8)Price per unit = ?

9) Compute the value of optimal lot size. Note: Computing Q* is the 1sttask in EOQ model?

10)Give an interpretation of the value of optimal lot size. Be complete and specific?

11) How many times should we place order in one year? (2 dec pl) ?