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2. After you graduate and work as a supply chain management specialist, you realize that you need to apply your knowledge and skills that you

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2. After you graduate and work as a supply chain management specialist, you realize that you need to apply your knowledge and skills that you acquired in various courses. An auto manufacturing plant hires you as an inventory specialist. The plant needs 7,500 tires daily. The plant works 6 days a week and 50 weeks a year. You pay $50 per tire and your inventory holding cost per annum is 10% of the cost of goods. The current replenishment policy is to receive a shipment once a week and the cost of transportation, labor, etc., is $400, in addition to the cost of tires. Determine the following: a. Order size, b. # of orders or replenishment/shipments per annum, c. Annual cost of replenishment and inventory holding, d. After computing the above, you would like to follow an optimal ordering policy and compute the optimal order size and its cost. Based on your computation, determine: i. The optimal order size for this scenario, ii. Annual replenishment and holding cost, 111. Annual savings e. The tire supplier sends shipments only in multiple of thousand tires, that is, your order size has to be in thousands. Having known this new information, determine d(ii) and d(iii) again

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