Problem $1$:The buyer at Ajax Co$.$ is responsible for maintaining inventory of a key

component which is used in the firm$$s manufacturing process

throughout the entire $52-$week year. The annual demand is $12,000$ units

and the component costs $$6\mathrm{.}00$ per unit. When an order is placed, it

takes $2$ weeks for parts to arrive. See below for additional data:

Ordering cost $ $80\mathrm{.}00$

Holding cost per unit per year $ $1\mathrm{.}50$

Safety stock $250$ units

Use the Fixed$-$Order Quantity Model to find the following:

a$)$ Compute the optimum order quantity $($Q$).$

b$)$ What is the reorder point $($R$)$ for the item?

c$)$ Find the Total Annual Cost $($TC$)$ for the item.