A toy manufacturer purchases wind-up motors, which are then put into its toys. Assume that:

Annual demand (D) = 20,000 units

Holding cost = $0.80 per unit per year

Ordering cost (S) = $20 per batch (per order)

a) To minimize cost, how many quantities per order should the toy manufacturer purchase?

b) How many orders should the toy manufacturer place annually for this problem?

c) Assuming a 300-day work year, what is the expected time between orders?

d) What is the total inventory cost (rounded to nearest dollar) of the optimal behavior in this problem?