Supply Chain Management

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1. To produce cat foods, we need to order ingredient X from a global supplier. X is ordered in large barrels and is used at the rate of 1800 barrels per year. Each order that is placed with the supplier costs $50 to process. Storage space is at a premium on the manufacturing floor and out in the yard, so their annual cost to hold inventory is $82 per barrel. Lead time is 6 days. 1a. What is the best order quantity? 1b. What is the total cost (including holding cost and ordering cost)? 1c. What is the reorder point