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a.

The optimal order quantity per order

D= 1200

Cc= 170

Co= 450

2CoD
Q= √ Cc

2(450∗1200)
=√
170

1080000
=√ 170

= √6352.94118

= 79.7 personal computers

b. The minimum total annual inventory costs


𝑄 𝐷
Total cost = Cc + Co
2 𝑄

79.7 1200
=170 + 450
2 79.7

13549 540000
= +
2 79.7

=13549.9

=Approximately $13550

c. The optimal number of orders per year


𝐷
=𝑄

1200
= 79.7

=15.05 orders

d. The optimal time between orders (in working days)


Number of working days in the year= 364

Number of orders= 15.05

Optimal time= 364/15.05

=24.18 days

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