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1. bbq sells over 200 products. product a has sales of 400,000 units per year. the carry cost of each product is $36. the order cost is $28. a. how much is the optimum order quantity? b. how frequently should they reorder in days? 2. you were asked to examine the inventory policy for the company you work for. you start with its most popular product line. the carry cost for the product is $15 per unit and the reorder cost regardless of the number of units ordered is $40. it sells 75,000 units a year. its current inventory policy is to reorder 700 units each time the inventory goes to zero. a. is this a good policy? b. if not why not? c. what do you recommend?
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