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Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 3 0 , 0 0

Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a
constant rate of 30,000 units per year. It costs Leaky Pipe $10 to process an order to
replenish stock and $1 per unit per year to carry the item in stock. Stock is received four
working days after an order is placed. No backordering is allowed. Assume 300 working
days a year.
a) What is Leaky Pipe's optimal order quantity?
b) What is the optimal number of orders per year?
c) What is the total cost of ordering the optimal order quantity?
d) What is the reorder point?
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