Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation from a variety of different suppliers. One particular supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is $4,500$ units, the ordering cost is $$50$ per order, and the annual holding cost rate is $25\%.$

Question

$($a$)$ If the cost of the part is $$20$ per unit, what is the economic order quantity? $($Round your answer to the nearest integer.$)$

$300?$

$($b$)$ Assume $250$ days of operation per year. If the lead time for an order is $12$ days, what is the reorder point? $($Round your answer to the nearest integer.$)$

$216?$

$($c$)$ If the lead time for the part is six weeks $(30$ days$),$ what is the reorder point? $($Round your answer to the nearest integer.$)$

$540?$

$($d$)$ What is the reorder point for part $($c$)$ if the reorder point is expressed in terms of the inventory on hand rather than the inventory position? $($Round your answer to the nearest integer.$)$

$0?$