Answer Happy

Question 4. (15 points) The Sky Dragon Bicycle Shop operates 364 days a year, closing only on Christmas Day. The shop pays $300 for a particular bicycle purchased from the manufacturer. The annual holding cost per bicycle is estimated to be 25% of the unit purchase price. The shop sells an average of 18 bikes per week. The cost for each order is $250 and it takes 5 days to receive the ordered items. 1) Find the optimum order size. (5 points) 2) Find the reorder point? (5 points) 3) If they sell an average of 30 bikes per week, how will it change the reorder point? (5 points)