DMO S.A. is a company that trades a particular automotive component. It utilizes the fixed order system to organize and audit the stock flow of its product. DMO S.A. sets its orders in a standard basis and specifically for a number of 300,000 product units per annum. Yearly costs of storehouse and security is set to 6 /unit. Moreover, the cost per order is 200 . Based on the above attempt to answer the following: a. Estimate the number of automotive component units which should be ordered to minimize the inventory costs.

b. Estimate the number of the annual orders after taking into consideration the yearly demand and the economic order quantity.