Problem 3: Demand /yearly = 12,000, S = $16, and H=10% of the Price Offer 1 2 3 Discount Quantity 1 to 999 1,000 to 1,999 2,000 and over Discount (%) no discount 4 5 Discount Price (P) $5.00 $4.80 $4.75 Jot. (a) Evaluate the number of computers that the store manager should order in each replacement (b) Maximum Inventory (c) Average Inventory (d) The total annual number of order cycles (e) Length of the order cycle (f) Average flow time (9) Annual inventory-related cost (Yearly total cost) Problem 4: The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 500 per day. One hot dog requires one sausage. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day (open 300 days). The cost to prepare the equipment for producing hot dogs is $30. Annual holding costs are $2 per hot dog. The factory operates 300 days a year. (a) Evaluate the number of sausages that the store manager should order in each replacement lot. (b) Maximum Inventory (c) Average Inventory (d) Length of the order cycle (e) Annual inventory-related cost (Yearly total cost)

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