Question: Greenwood Lumber Mill (GLM) in Oregon processes 20,000 logs during its 250 operating days per year. A logging company supplies GLM with logs immediately upon order, at the rate of 120 logs per day. GLM has estimated that ordering cost per order is $125, and holding costs while the logs are being held for processing is $30 per log per day.

a) Determine the optimal order quantity

b) Determine total inventory cost associated with this quantity

c) Plot the inventory level model graphically and indicate the number of lumber mill operating days between orders