One of the top-selling SKUs in the container group at the museum's gift shop is a bird feeder. Sales are 18 units per week, and the supplier charges $60 per unit. The cost of placing an order with the supplier is $45. Annual holding cost is 25 percent of a feeder's value, and the museum operates 52 weeks per year. The lead time to receive order is 2 weeks. Find 1. EOQ 2. Annual holding costs 3. Annual ordering costs 4. Number of orders in a year 5. Time between two orders 6. Assuming that the demand and lead time are both constant, what should be the reorder point? 7. Suppose that things have become uncertain, and that customer demand is no more constant. Customer demand is now normally distributed with mean being the same as given in the problem description and standard deviation =5 units per week. The supply source is still very reliable and as a result the lead time is constant. a. Find out the safety stock needed to achieve 95% customer service level. b. What should be the reorder point? 8. Now, suppose that customer demand is constant as given in the problem, but lead time is variable. Assume that the lead time is normally distributed with a mean of 2 weeks and standard deviation of 0.5 weeks. Find out the safety stock needed to achieve 95% customer service level. 9. Now, suppose that both customer demand and lead time are variable. Assume that the lead time is normally distributed with a mean of 2 weeks and standard deviation of 0.5 weeks. Customer demand is now normally distributed with mean being the same as given in the problem description and standard deviation =5 units per week. Find out the safety stock needed to achieve 95% customer service level. 10. Now lets suppose you get a discount of $1.20 if you buy 300 or more in a single order. a. Find the EOQ for the new price. Is the EOQ feasible? b. Would you take the discount? c. What should be the order size 11. Now lets suppose you get a discount of $3.00 if you buy 500 or more in a single order. a. Find the EOQ for the new price. Is the EOQ feasible? b. Would you take the discount? c. What should be the order size Formulas EOQ=H2DSdLT=(d2L)+(d2LT2)ROP=dL+zdLTTC=QDS+2QH+PDT=d(P+L)+zP+LP+L=dP+L One of the top-selling SKUs in the container group at the museum's gift shop is a bird feeder. Sales are 18 units per week, and the supplier charges $60 per unit. The cost of placing an order with the supplier is $45. Annual holding cost is 25 percent of a feeder's value, and the museum operates 52 weeks per year. The lead time to receive order is 2 weeks. Find 1. EOQ 2. Annual holding costs 3. Annual ordering costs 4. Number of orders in a year 5. Time between two orders 6. Assuming that the demand and lead time are both constant, what should be the reorder point? 7. Suppose that things have become uncertain, and that customer demand is no more constant. Customer demand is now normally distributed with mean being the same as given in the problem description and standard deviation =5 units per week. The supply source is still very reliable and as a result the lead time is constant. a. Find out the safety stock needed to achieve 95% customer service level. b. What should be the reorder point? 8. Now, suppose that customer demand is constant as given in the problem, but lead time is variable. Assume that the lead time is normally distributed with a mean of 2 weeks and standard deviation of 0.5 weeks. Find out the safety stock needed to achieve 95% customer service level. 9. Now, suppose that both customer demand and lead time are variable. Assume that the lead time is normally distributed with a mean of 2 weeks and standard deviation of 0.5 weeks. Customer demand is now normally distributed with mean being the same as given in the problem description and standard deviation =5 units per week. Find out the safety stock needed to achieve 95% customer service level. 10. Now lets suppose you get a discount of $1.20 if you buy 300 or more in a single order. a. Find the EOQ for the new price. Is the EOQ feasible? b. Would you take the discount? c. What should be the order size 11. Now lets suppose you get a discount of $3.00 if you buy 500 or more in a single order. a. Find the EOQ for the new price. Is the EOQ feasible? b. Would you take the discount? c. What should be the order size Formulas EOQ=H2DSdLT=(d2L)+(d2LT2)ROP=dL+zdLTTC=QDS+2QH+PDT=d(P+L)+zP+LP+L=dP+L