Assignment:
Suppose that Westside Auto with D= 12,000 units per year, Cb= $0.50, and CO= $25, decided to operate with a backorder inventory policy. Backorder costs are estimated to be $5 per unit per year. Identify the following:
a) Minimum cost order quantity
b) Maximum number of backorders
c) Maximum inventory
d) Cycle time
e) Total annual cost