Bell Canada stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is

15,000

units. Bell estimates its annual holding cost for this item to be

$25.00

per unit. The cost to place and process an order from the supplier is

$75.00.

The company operates

300

days per year, and the lead time to receive an order from the supplier is

2

working days.