Lott Manufacturing Inc. has been ordering parts for its production process in lots of 10,000 units. Each order costs the firm $50.00 to place and holding costs per unit average $3.00. Lott uses 200,000 units every 250 days.

Part A-Calculate the EOQ: units

Part B-Calculate the inventory costs implied by the EOQ:

Part C- How much inventory cost savings would Lott Manufacturing have if it moved from the current order quantity of 10,000 units to the EOQ units?

Part D-If it takes two days to receive an order from suppliers, at what inventory level should another order be placed? units