Mercer Sporting Goods (MSG) expects to order 54,000 baseball bats for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $450 per order; the purchase price per bat is $18; and the firm's inventory carrying costs is equal to 40 percent of the purchase price. (Assume a 365-day year.)

(a) What is the economic ordering quantity for chips?

(b) If MSG holds a safety stock equal to a 30-day supply of bats, what is its average inventory level?

(c) Assume that MSG holds a safety stock equal to a 30-day supply of bats. What is the maximum amount of inventory that will have on hand at any time, that is, what will be the inventory level right after a delivery is made?

(d) How many orders should MSG place during the year?

(e) If the lead time for placing an order is 5 days, and MSG holds a safety stock equal to a 30-day supply of chips, then at what inventory level should an order be placed?

(f) If MSG holds a safety stock equal to a 30-day supply of chips, what is MSG's minimum cost of ordering and carrying inventory?