M$.$ Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of $250$ units, and this is constant throughout the year. Carrying cost is estimated to be $$1$ per unit per year, and the ordering $($setup$)$ cost is $$20$ per order. The company operates $250$ days per year.

To minimize cost, how many units should be ordered each time an order is placed?

$50$

How many orders per year are needed with the optimal policy?

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How many days in between orders

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What is the average inventory if costs are minimized?

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Suppose that the ordering $($setup$)$ cost is not $$20,$ and Cotteleer has been ordering $150$ units each time an order is placed. For this order policy $($of Q $=150)$ to be optimal, determine what the ordering $($setup$)$ cost would have to be$.$ $

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