The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 60 cars per month. The cars cost $80 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%.

(a) Determine the economic order quantity and total annual cost (in \$) under the assumption that no backorders are permitted. (Round your answers to two decimal places.) Q=36.74TC=$ Q=TC=$ to two decimal places.) days (d) Would you recommend a no-backorder or a backorder inventory policy for this product? Explain. Yes, the maximum wait is over a week long, but the cost savings of the backorder case is large enough to justify a long wait. Yes, the maximum wait is less than a week and the backorder case has a lower cost than the EOQ case. No, the maximum wait is over a week long and the EOQ case has a lower cost than the backorder case. No, the maximum wait is less than a week but the EOQ case has a lower cost than the backorder case. No, the maximum wait is over a week long, which does not justify the cost savings of the backorder case. (e) If the lead time is six days, what is the reorder point for both the no-backorder and backorder inventory policies? (Round your answers to two decimal places.) EOQBackorderr=r=