Inventory models

Ann Fransisco, the owner of Anns Boutique is planning to order baby dresses for her store. The dress manufacturer informed her that if the baby dress order received this month are worth P30,000 or more, the manufacturer will sponsor a one-day visit by Dr. Rose Manalo, a pediatrician who will come to the store and talk with the mothers about child care. Ann orders P350,000 worth of baby dresses per year. Her carrying costs are 20% of average inventory and her ordering costs is P300 per order.

a. If Ann places her order using EOQ model, will the value of her order be sufficient to qualify for a visit by Dr. Manalo?

b. How much is the worth of baby dresses per order?

c. How many days interval per order?