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The Purin Dog Food is a very popular product at Kay Noemi s corner grocery. Demand for this is relatively constant, and the total demand

The Purin Dog Food is a very popular product at Kay Noemis corner grocery. Demand for this is relatively constant, and the total demand for the year is 1,200 bags. The cost of placing an order is $50, while the holding cost is $3 per unit per year. The store is open 300 days per year. The reorder lead time for this product is 8 days.
(a) if Kay places 50 orders per year, what would her ordering and holding costs be?
(b) if Kay wishes to minimize her total inventory cost, how many units should she order each time an order is placed? How much would her ordering and holding costs be?
(c) What is the reorder point?

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