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Suppose that Westside Auto, with D = 13,600 units per year, C h = (2.2)(0.5) = $1.1, and C o = $22, decided to operate

Suppose that Westside Auto, with D = 13,600 units per year, Ch = (2.2)(0.5) = $1.1, and Co = $22, decided to operate with a backorder inventory policy. Backorder costs are estimated to be $4 per unit per year. Westside has 250 working days per year. Identify the following:

  1. Minimum cost order quantity. If required, round your answer to two decimal places. Q* =
  2. Maximum number of backorders. If required, round your answer to two decimal places. S* =
  3. Maximum Inventory. If required, round your answer to two decimal places.
  4. Cycle time. If required, round your answer to two decimal places. T = days
  5. Total annual cost. If required, round your answer to the nearest cent. $

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