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Suppose that Westside Auto of Problem 4, with D = 12500 units per year, Ch =...

Suppose that Westside Auto of Problem 4, with D = 12500 units per year, Ch = (2)(0.3) = $0.6, and Co = $29, decided to operate with a backorder inventory policy. Backorder costs are estimated to be $7 per unit per year. Identify the following. If required, round your answers to two decimal places.

  1. Minimum cost order quantity.

    Q* =
  2. Maximum number of backorders.

    S* =
  3. Maximum Inventory.


  4. Cycle time.

    T =
  5. Total annual cost.

    $
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