Jimmy Young is the purchasing agent for MAKEIT Company, which sells industrial

valves and fluid control devices, One of MAKEIT's most popular valyes is the Western,

which has an annual demand of $15,000$ units. The cost of each valve is $$100,$ and the

inventory carrying cost is $$10,$ Jimmy has made a study of the costs involved in placing an

order for any of the valves that MAKEIT stocks, and he has concluded that the average

ordering cost is $$20$ per order Furthermore, it takes about $4$ working days for an order to

arrive from the supplier Assuming $200$ working days per year $20$ Marks$)$

a$)$ What is the economic order quantity? $(4$ Marks$)$

b$)$ What is the average inventory if the economic order quantity is used? $(1$ Marks$)$

c$)$ What is the optimal number of orders per year? $(4$ Marks$)$

d$)$ What is the optimal number of days between any two orders? $(4$ Marks$)$

e$)$ What is the total annual inventory cost? $(4$ Marks$)$

f$)$ What is the reorder point? $(3$ Marks$)$