Walmark Store compresses and palletizes empty merchandise cartons for recycling. The store generates five pallets a day. The cost of storing a pallet in the store's back lot is $.10 per day. The company that moves the pallets to the recycling center charges a flat fee of $100 for the rental of its loading equipment plus a variable transportation cost of $3 per pallet. Note: no lead time required.

Answer the following questions based on the information given above and Classical Static Economic-Order-Quantity Inventory Model described in Taha Chapter 13.3.1 (see posted pdf)

a. State in with numbers and words (i.e. 5 pallets a day)

D = Demand rate

K = Setup cost associated with the placement of an order (dollars per order)

h = Holding cost (dollars per inventory per unit of tome)

b. Give the formula the total cost per unit of time per pallet TUC(y) for this situation.

c. Give the formula and calculate the optimal order quantity y*, the optimal ordering cycle length t₀* and state the optimal inventory policy for this situation.