Arizona Instruments uses integrated circuits (ICs) in its business calculators. Its annual demand for ICs is 150,000 units.

The ICs cost Arizona Instruments $10 each.

The company has determined that the EOQ is 20,000 units. It takes 18 days between when an order is placed and when the delivery is received

. Carrying costs are 10 percent of the inventory value.

Determine the following: REQUIRED: Determine

i. The optimal ordering frequency

ii. The average inventory

iii. The annual carrying costs

iv. The reorder point