DO NOT SOLVE WITH EXCEL..... SOLVE HANDWRITING SOLVE WITH HAND CALCULATIONS STEP BY STEP.

Blank DVDs are being sold in a popular music store and the DVDs are imported at $11 per item. Annual demand for blank DVDs is 4000 units per year. Fixed cost of placing an order for DVDs is $210 and annual inventory holding cost is evaluated as the loss of capital cost where the market rate of return is 15%. Backordering is not allowed. a) What will be the optimal order lot size. What will be the optimal cycle length and optimal annual cost? Roughly draw the inventory versus time graph for 2 or 3 cycles. b) Suppose that the supplier of DVDs is making shipments only at multiples of 100, i.e. they can ship 100 units, 200 units, 300 units, etc., but not any quantities in-between. What will be the revised optimal order size and optimal cycle length? How does the revised optimal annual cost compare to what is found in part-(a). The store owner in Q.1 is considering the pricing offer of a different supplier of DVDs instead of importing them at $11 per item. This supplier offers the following pricing pattern: (1) $13 per unit if order quantities do not exceed 500 DVDs, (ii) if the order size is between 500 and 800 then the first 500 units are priced at $13, but the additional DVDs are charged at $10 per unit, (iii) if the ordering lot size is more than 800 then the first 800 units are priced as in (ii) and the quantity exceeding 800 is priced at $9 per DVD. Fixed ordering cost is $210. (20pts) What is going to be the optimal ordering quantity, optimal cycle length and the optimal annual cost, if this supplier is preferred. (5pts) Sketch the graph of annual cost (G(O) versus ordering lot size (Q). Blank DVDs are being sold in a popular music store and the DVDs are imported at $11 per item. Annual demand for blank DVDs is 4000 units per year. Fixed cost of placing an order for DVDs is $210 and annual inventory holding cost is evaluated as the loss of capital cost where the market rate of return is 15%. Backordering is not allowed. a) What will be the optimal order lot size. What will be the optimal cycle length and optimal annual cost? Roughly draw the inventory versus time graph for 2 or 3 cycles. b) Suppose that the supplier of DVDs is making shipments only at multiples of 100, i.e. they can ship 100 units, 200 units, 300 units, etc., but not any quantities in-between. What will be the revised optimal order size and optimal cycle length? How does the revised optimal annual cost compare to what is found in part-(a). The store owner in Q.1 is considering the pricing offer of a different supplier of DVDs instead of importing them at $11 per item. This supplier offers the following pricing pattern: (1) $13 per unit if order quantities do not exceed 500 DVDs, (ii) if the order size is between 500 and 800 then the first 500 units are priced at $13, but the additional DVDs are charged at $10 per unit, (iii) if the ordering lot size is more than 800 then the first 800 units are priced as in (ii) and the quantity exceeding 800 is priced at $9 per DVD. Fixed ordering cost is $210. (20pts) What is going to be the optimal ordering quantity, optimal cycle length and the optimal annual cost, if this supplier is preferred. (5pts) Sketch the graph of annual cost (G(O) versus ordering lot size (Q)