You are the manager of a distribution center. Answer the following questions given that the estimated annual demand for a product is 2,400.

a. Assume the optimal order quantity, Q*, is equal to 200. How often do you need to order, T* (month), and how many times per year, N*?

T*: N*:

**Please fill the blanks with only numbers. Note that the unit for T* is month.

b. Assume that the annual demand is variable with an average of 2,400. You calculated the Reorder Point, ROP, equal to 500. From the time you will place your order (i.e., when inventory falls to the Reorder Point) until the time you will receive the order, you expect to sell 250 products. What is the level of your On-hand Inventory at the time you will receive the order?

On-hand Inventory: