The manager of a construction company suspects he is not buying a particular product in an economical way. Total maintenance cost is $0.02 PER YEAR per product. Cost of each order is $25 and annual demand is 215 000 products.

Calculate and say what advice would you give the controller about:

(a) quantity of financial order

(b) number of days this order would last

(c) number of orders per year (365 days)

(d) total cost per year