Economic order quantity, inventory cost, and reorder point Lucasso Company sells 30,000 blank cassette recording tapes per year. Each tape costs $2.50. The cost of placing one order for the tapes is $200 and the carrying cost of the inventory is 15 percent of purchase price. Tapes can be ordered only in boxes of 100 each. The company operates 300 days per year, and keeps a safety stock of 150 tapes. Lead time for an order is 5 days.

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REQUIRED a. Compute the economic order quantity for the tapes. b. Determine the total cost of inventory if the economic order quantity could be ordered. c. Determine the number of orders per year and the total cost of inventory for the company. d. Compute the reorder point for the cassette tapes.