a) Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: [6 marks] Annual demand: 4,200 Holding cost per bracket per year: $1.50 Order cost per order: $18.75 Lead time: 3 days Working days per year: 250 i) What is the EOQ? ii) What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? Iii) What is the optimal number of orders per year? What would be the annual order cost? iv) What is the total annual cost of managing the inventory? v) What is the optimal number of days in between any two orders? vi) What is the reorder point (ROP)? (b) Arthur Meiners is the production manager of Wheel- Rite, a small producer of metal parts. Wheel- Rite supplies Cal-Tex, a larger assembly company, with 10,000 wheel bearings each year. This order has been stable for some time. The setup cost for Wheel-Rite is $50, and holding cost is 5.50 per wheel bearing per year. Wheel-Rite can produce 500 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 50 bearings be shipped to it each business day. [4 marks] i) What is the optimum production quantity? ii) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite? ill) How many production runs of wheel bearings will Wheel-Rite have in a year? iv) What is the total cost for Wheel-Rite