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Anna and Joachim have been ordering kits to assemble nativity sets in a fixed interval every 3 weeks, which they feel is sufficient to keep pace with demand of 77 kits per week. They incur ordering costs of $33.00 every time they order and it costs them $0.29 per kit, per week, for inventory carrying costs. They believe demand is very stable, lead time is 2 weeks and does not vary. Should they continue to order in this interval, or would it make sense to order a different quantity to reduce costs, thereby changing the order interval? Please compute your answers for different quantities and show your work.
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