Use the below information to answer Questions $13-18.$

You work for Blue Bunny ice cream. You are working with your supplier to order an efficient

number of chocolate from your suppliers. You sell $750,000$ tubs of ice cream per year. It costs $$5$

per unit to purchase and $$15,000$ per order. Holding costs are $$3$ per unit. Your current lead time

is $7$ days.

$13.(5$ points$)$ What is the optimal order quantity $($Q$*)?$

$14.(5$ points$)$ What is the optimal number of days between orders $($T$*)?$

$15.(4$ points$)$ How many orders should you place each year?

$16.(4$ points$)$ You should order Q$*$ units when inventory on hand equals what?

$17.(4$ points$)$ If the lead time were to change from $7$ to $0,$ how do your answers above

change?

$18.(4$ points$)$ Which two events would cause a cycle inventory to not be followed? That is$,$

what are two reasons why safety stock is carried?