Order lot size	1,600 units
Annual demand	19,200 units
Weight	22 pounds
Order processing cost	$200 per order
Inventory carrying rate	13% per year
	Supplier 1
Unit Price 1 to 2,000 units / order	$150
Unit Price 2,001 to 2,999 units / order	$145
Unit Price 3,000+ units / order	$140
Tooling Cost	$13,500
Distance	110 miles
Supplier defect rate (% of engine cost)	3%
Truckload (TL 40,000 lbs.): $1.25 per ton-mile
Less-than-truckload (LTL): $1.55 per ton-mile
Note: per ton-mile 2,000 pounds per mile

The annual transportation cost of using Supplier 1 is:

A.

Less than or equal to $30,000

B.

Greater than $30,000 and less than or equal to $40,000

C.

Greater than $40,000 and less than or equal to $50,000

D.

Greater than $50,000

2)

Order lot size	1,600 units
Annual demand	19,200 units
Weight	22 pounds
Order processing cost	$200 per order
Inventory carrying rate	13% per year
	Supplier 1
Unit Price 1 to 2,000 units / order	$150
Unit Price 2,001 to 2,999 units / order	$145
Unit Price 3,000+ units / order	$140
Tooling Cost	$13,500
Distance	110 miles
Supplier defect rate (% of engine cost)	3%
Truckload (TL 40,000 lbs.): $1.25 per ton-mile
Less-than-truckload (LTL): $1.55 per ton-mile
Note: per ton-mile 2,000 pounds per mile

The combined annual carrying AND quality cost is:

A.

Less than or equal to $100,000

B.

Greater than $100,000 and less than or equal to $105,000

C.

Greater than $105,000 and less than or equal to $110,000

D.

Greater than $110,000 and less than or equal to $115,000

E.

Greater than $115,000

3)

Month	Demand (units)
June July August September October	255 240 310 280 250

What is the forecast for November if the weighted moving average technique with the following weights is used?

t t-1 t-2 t-3

0.50 0.20 0.20 0.10

	A.	263.0
	B.	265.5
	C.	267.0
	D.	275.5