1. Lila Battle has determines that the annual demand for number 6 screw is 100,000 screws.
Lila, who works in her brother’s hardware store, is in charge of purchasing. She estimates
that it cost $10 every time an order is placed. This cost includes her wages, the cost of the
forms use in placing the order, and so on. Furthermore, she estimates that the cost of carrying
one screw in inventory for a year in one-half of 1 cent. Assume that the demand is constant
throughout the year.