Round up to 4 d.p.

6. (11 marks} A sport equipment retail store purchases ping pong balls at $20 per pack from a supplier with a 5-day lead time. The total cost to handle a purchase order is $10. and the inventory cost for each pack of ping pong balls is 5% of the cost plus $0.40 for insurance. Suppose the store sells 34.300 packs of ping pong balls evenly throughout the year and has 360 working days per year. (a) Find the BBQ. (13} Find the minimum total annual cost. (c) Find the reorder point. (d) How often (in days} should the orders be placed? (e) Produce a graph detailing the inventory change in time and reordering point