Problem 1. EOQ

SkyPipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 100 units per day. It costs SkyPipe $10 to process an order for stock replenishment and $1.00 per unit per year to carry the item in stock. No backordering is allowed. SkyPipe has 300 working days a year and use EOQ model to plan its inventory system.

1. What is SkyPipes optimal order quantity (i.e., EOQ)? 2. What is the optimal number of orders per year? 3. What is the optimal interval (in working days) between orders? 4. What are the total annual costs of this inventory system?