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EOQ Economic Order Quantity formula and explanation B

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The requirements for your initial post are below. Please number your answers and include your responses to all of the requirements in your initial post to get full credit.

What does the term "stockout" mean and why does it create problems for a company when it happens? Use examples in your explanation.

What does the term "spoilage" mean and why does it create problems for a company when it happens? Use examples in your explanation.

Describe the costs that need to be balanced when considering how many units should be ordered for each order being placed with a supplier.

Assume we sell smart phones at our local retail business. Annual demand is $5,000$ units, ordering cost is $$200$ per order, and carrying cost is $$50$ per unit for one year.

a$.$ What is the optimal order size for each order placed $($round to the nearest unit$)?$ Show your calculation and explain what this means.

b$.$ Based on your answer for $4$ a$,$ how many orders will be placed during the year $($round to the nearest whole numberi$)?$ Show your calculation and explain what this means.

Why is it important to try and find the optimal order size? How does this help our company?

Search entries or author please watch the video on youtube and answer all the questions