Part 2: Problem Solving. (15 pts) Directions: Answer the questions given below. Identify the given first before proceeding to solution. 1. XYZ Company is using plastic tubes in its operation. If the company is using 250,000pcs of tubes annually and they spend BD 60 for making the orders while BD15 is for maintaining the tubes then: a. What is the best order quantity? (5pts) b. What is the total cost if they are to follow the best order quantity? ( 5 pts) 2. Considering the problem in Part 1, Q6, will you accept the order of 2,500 electronic bikes to be delivered in one month? Justify your answer. ( 5pts) FORMULA: MAX CAP =WSHRDW, LOST CAP =WSHRDW AVAIL CAP = MAX CAP - LOST CAP W= workers/shift, S= shift/day, H= actual working hr,R= rate of output, D= days/week W= weeks/month - usually 4 weeks in a month. EOQ or Q=2DS/H,TC=Q/2(H)+D/Q(S),F=D/Q, Cycle =Q/D (Days ) D= annual demand, S= order cost, H= holding cost