Please provide feedback for the information below.

1. Stock out means that when customers come to our store to buy something, and the store does not have that item available for sell. For example, one time when I needed bean sprout, I came to Bel-air to look for it, but at that time, Bel-Air out of stock bean sprout, so I ran to Safeway and I fount it. From that day I always come to Safeway to buy bean sprout. Stock out can create problems for a company because next time when I need bean sprout, I will not come to Bel Air, but I come to Safeway first. So, Bel Air lost one customer and some income.

2. Spoilage means that when a store or company order too much items and they can not be sell in time, many of them will be spoiled or become obsolete. For example, I have a flower shop. I order 300 red roses last week, but I can only sell 50 red roses last week, and I have to thew away 250 roses because they are not good any more, I can not sell them to any one, so, it's waste money to buy too many roses.

3. The cost that need to be balanced when considering how many units should be ordered for each order are ordering cost which is shipping and delivery cost, andcarrying cost which is the cost to store and care for when we keep the items in the store. We need to save money by order as few times as possible, but we also need to think about the cost that we need to spend in order to keep the items in good condition until they are sold too.

4. D=4000;R=200; H=50

a) optimal size for each order placed

Q = LaTeX: \sqrt[]{}2*200*4000/50

Q=LaTeX: \sqrt{ }32000

Q= 179

It's means we need to order 179 smart phones for each order placed.

b) To have 4,000 units a year, we need to order

4000/179=22 times

it means we need to order 22 times a year and each time we order 179 smart phones.

5. It is important to try and find the optimal order size because we will not have stock out or spoiled or obsolete items. Find out the optimal order size will help the company save money and keep customers with us and increase our profit.