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4 ) Captain Kirk s Cellular begins each month with 7 4 0 phones in stock. This stock is depleted each month and reordered. If

4) Captain Kirks Cellular begins each month with 740 phones in stock. This stock is depleted each month and reordered. If the carrying cost per phone is $26 per year and the fixed order cost is $340, what is the total carrying cost? What is the restocking cost? Should the company increase or decrease its order size? Describe the optimal inventory policy for the company in terms of order size and frequency.
5) The Flowering Vine buys hanging plants for $2 each and resells them for $8.95 each. The firm sells 3,500 plants per year. Generally, the firm orders 400 plants at a time and has a fixed cost per order of $28. The carrying cost per unit is $1.16. To avoid newer plants mixing with older plants, the inventory is totally sold out before it is restocked. The total annual carrying cost is ____ and the total annual restocking cost is ____.
6) What are some of the pros and cons of a JIT inventory management system?

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