Question

If stock-outs are allowed for the inventory in the previous problem and back-order costs are estimated...

If stock-outs are allowed for the inventory in the previous problem and back-order costs are estimated to be 2.00 per unit per year. The information from the previous problem, demand is constant, with a rate of 10,000 units per month, annual holding cost is believed to be .60 per shirt, ordering cost is 60.00 per order.

1. What is the optimal order quantity?

2. What is the cycle time?

3. What proportion of the times will there be positive inventory?

4. What is the total annual cost?

5. What is the maximum inventory level?

Please show your work clearly, and sho what table you are using

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