VITRAN Bus Services purchases diesel fuel from Domino Gas Supply. In addition to fuel cost, Domino Gas Supply charges VITRAN Bus Services $250 per order to cover the expenses of delivering and transferring the fuel to VITRAN Bus Services storage tanks. The lead time for new shipment from Domino Gas Supply is 10 days, the cost of holding a gallon of fuel in the storage tanks is $0.04 per month, or $0.48 per year and the annual usage of fuel is 150,000 gallons. VITRAN Bus Services buses operate 300 days a year.

1. What is the optimal order quantity for VITRAN Bus Services?
2. How frequently should VITRAN Bus Services order to replenish the gasoline supply?
3. The VITRAN Bus Services storage tanks a capacity of 15,000 gallons. Should VITRAN Bus Services considers expanding the capacity of its storage tanks?
4. What is the reorder point?