Use information for all four parts.

Jimmy Manufacturing forecasts that its production will require 400,000 tons of iron over its 125 day planning period. Demand for Jimmy Manufacturings products is stable over time. Ordering costs amount to an average of $12.00 per order. Holding costs are estimated at $9.6 per ton of iron. Delivery time for each order is 4 days.

i. EOQ for Jimmy Manufacturing is ____ tons.

ii. How many tons of iron does the company use in a day?

iii. What is Jimmy Manufacturings average inventory balance?

iv. At what inventory level should Jimmy Manufacturing place a new order?