Question: The annual demand for a famous speaker component for small stereo systems is 40,000. Jalen Mathis estimates that the ordering cost is $15 per order.

The annual demand for a famous speaker component for small stereo systems is 40,000. Jalen Mathis estimates that the ordering cost is $15 per order. Furthermore, the carrying cost is estimated to b $3 per year. At this time, it takes 30 days between the time that Jalen places an order and the time the order is received. During this time demand is 250 units.

A. What is the optimal number of days between orders?

B. What is the total annual inventory cost?

C. What would the average inventory be?

D. What is the reorder point?

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