4. Recommendations: (a) Decision: What alternative would you recommend, and why? (b) What implementation problems are the decision- maker likely to face? How would you address them? CASE CASE 8.1 LOW NAIL COMPANY After making some wise short-term investments at a race track, Chris Low had some additional cash to in- vest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1 per year per keg space. This meant that Low had to rent a constant amount of warehouse space for the year, and it had to be large enough to accommo- date an entire order when it arrived. Low was not wor- ried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low bought his nails on a delivered basis.