The Milling Corp. has developed a new type of widget. The local distributor expects to increase his sales by 25% over the past year due to this new development. Last year's sales were $150,000 at a selling price of $100 per unit. A safety stock of 35 units has eliminated stockouts. The manager would like to cut costs as much as possible and comes to you for advice. 
a) What is the economic order quantity?
b) What is the amount of average inventory?
c) How many orders will be made per year?
d) What is the total cost of this inventory decision?
Definitions:
John B. Watson
An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over the study of the mind.
B. F. Skinner
A renowned American psychologist best known for his work in developing the theory of behaviorism and operant conditioning.
The Animal Mind
The study of the mental processes and behaviors of non-human animals.
Margaret Floy Washburn
An early 20th-century psychologist known for being the first woman to receive a PhD in psychology and for her work in animal behavior and motor theory development.
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