1:(30 pts) Consider the EOQ model assumptions, and suppose that there is an additional assumption such as: procurement can be done in batches of N units at a price of N.P1 per batch and can be done in units at a price of P2 per unit. How would you determine the economic order quantity?

2:(30 pts) Consider the EPQ model assumptions. Suppose that there are two types of setups. First setup type costs C1 per setup and the production rate is r1; second setup type cost C2 per setup and the production rate is r2. How would you determine the economic production quantity?

3:(30 pts) Consider the EOQ model with positive lead time. Lead-time is L1 with probability p and L2 with probability (1-p). How would you calculate the reorder point?