A local retail store sells a popular product with a constant demand of $1,200$ units per year. The

ordering cost is $$50$ per order, and the carrying cost per unit per year is $$2.$ The company operates

$300$ days in a year. Orders arrive within $5$ days.

a$)$ Calculate the Economic Order Quantity $($EOQ$)$ for ABC Company$$s inventory. $($Ans:

$244\mathrm{.}95)$

b$)$ Determine the optimal number of orders per year. $($Ans: $4\mathrm{.}9)$

c$)$ Calculate the total annual inventory cost at the EOQ. $($Ans:$490)$

d$)$ If the company currently orders $200$ units per order, calculate the total annual inventory

cost associated with this order quantity. $($Ans: $$500)$

e$)$ Calculate the reorder point. $($Ans: $20)$