Delta Company sells 240,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,200 bags. Each bag costs KES 400, inventory carrying costs are 20%, and the cost of placing an order with its supplier is KES 2,500.

Required:

1. What is the EOQ?
2. What is the maximum inventory of fertilizer?
3. What will Deltas average inventory be?
4. How often must the company order?