An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One particular part, a popular brand of oil filter, is purchased by the warehouse for $1.50 each. It is estimated that the cost of order processing and receipt is $100 per order. The company uses an inventory carrying charge based on The platters cost $18.80 each, order cost is $75.00 per order, and the company is currently using a stock-out cost of $400.00 per platter. (Because the industry is so competitive, stock-outs are very costly.)

a. Because of a prior contractual agreement with the supplier, DDL must purchase the platters in lots of