a) To minimize cost, how many units should be ordered each time an order is placed?
b) How many orders per year are needed with the optimal policy?
c) What is the average inventory if costs are minimized?
d) Suppose that the ordering (setup) cost is not $20, and Cotteleer has been ordering 150 units each time an order is placed. For this order policy (of Q 5 150) to be optimal, determine what the ordering (setup) cost would have to be.