Neon lights on the U of A campus are replaced at the rate of 200units per day. The physical plant orders the neon lights periodically. It costs $100 to initiate a purchase order. A neon light kept in storage is estimated to cost about $0.04 per day. The lead time between placing and receiving an order is 15 days. Determine the optimal inventory policy for ordering the neon lights.

Neon lights on the U of A campus are replaced at the rate of
200units per day. The physical plant orders the neon lights
periodically. It costs $100 to initiate a purchase order. A neon light
kept in storage is estimated to cost about $0.04 per day. The lead
time between placing and receiving an order is 15 days. Determine the
optimal inventory policy for ordering the neon
lights.