Home Depot is a large hardware store located in Long Beach Mall: The Everlast Binder, a special purpose glue is one of the items it sells. Each unit of Everlast Binder costs Home Depot $12. There is an annual demand for 36,000 Everlast Binder and demand happens at a constant rate throughout the year. The manager has determined that the ordering cost is $220 per order. The holding cost due to storage is $1 per item per year. Home depot managers figure their cost of capital is approximately 20% per year. It takes exactly 1 month (30 days) for a shipment to arrive from the Everlast Binder supplier to the store. Assume that there are 12 months of 30 days in one year. Suppose that Home depot is currently reordering the Everlast Binder from their supplier in shipments of 6000 units every two months.

Suppose that the supplier of Everlast Binder for home depot only ships in truckloads of 1600 units, how often and how much would you recommend they order in order to minimize the total annual cost?