Dostyk Inc. is one of the largest retail chains with more than 100 branches in the United States. Akeyactivityofthecompanyisitsinventoryoperation.Thecompany's fastest- moving inventory item has a demand of 80,000 units per year. The inventory carrying cost is $15 per unit per year and cost of each unit is $200. The average ordering cost is $60 per order and it takes approximately 2 days for an order to arrive from the manufacturer.Thecorporatemaintains operations5daysperweek50weeks oftheyear, closing the last two weeks of December.Based on this information provide your responsestothefollowingquestionsandshowyourworkindeterminingyourresponses.

1. Howmuchshould Dostykordereachtimetoreplenish itsinventoryduringtheyear?
2. Whatistheaverageinventoryleveloftheitemiftheamount orderedinpartais used?
3. Whatis theoptimal numberofordersperyear?
4. Whatistheoptimalnumber ofdaysinbetweentwoconsecutiveorders(i.e.,cycle length)?
5. Whatisthetotalannual costofordering andholdinginventoryusingtheapproach you used in part a?
6. Whatisthetotalannual cost,includingcostoftheitems,whenusingtheapproachin part a?
7. Whatisthereorderpointfortheitemwhenusingtheapproachinpart a?
8. Whatisthesafetystocklevelifthecompany uses areorderpointof750unitsandthe quantity in part a?
9. Supposethattheorderingcostisnot$60,andDostykhasbeenordering1,000units each time an order is placed. For this order policy (of Q=1000), to be optimal, determine what the ordering cost would have to be.