Please provide a correct and detaliwd answer to tge following qustions.
Tweedy Guitars of St. Louis, MO, is a distributor of hollow-body guitars, which are sold to retailers, online music stores, and direct to customers. The guitars are manufactured in Ventura, CA. and currently shipped to St. Louis, MO. Jeff Tweedy, vice president of logistics, has asked you to evaluate his overall inventory management system. In order to this, you start with a basic analysis of inventory maragement you learned at ECU. You have collected the following information. Use it to answer questions 3a,3b and 3c : - Annual demand: 3,000 guitars (assume 200 days/year and constant demand) - Guitar value: $400 each - Holding cost (annual): $135 - Setup cost per order to replenish inventory: $125 a) What is the economic order quantity for Tweedy Guitars in units? b) Using the EOQ you calculated in part s, what is the total annual costs (holding, setup, and item costs)? c) What is the ROP (assume lead-time is constant at 2 days)? 2. If the demand for the hollow-body guitar increases to 3,900 , what is the new EOQ, total annual costs, and ROP? HW \#5 Fall 2023 3. Tweedy Guitars also sells its trademark 'Flying X guitar with a patented built-in wah-wah pedal. The pedal is ordered separately from the rest of the guitar components. Part A. Using the following information, calculate the EOQ and ROP for the wah-wah pedal. - Annual demand: 2,100 pedals (assume 200 days/year and constant demand) - Holding cost (annual): $15 - Setup cost per order to replenish inventory: $55 - Assume lead-time constant at 3 days Part B. The supplier for the pedal offers quantity discounts as follows: Calculate the total cost at EOQ and at the total cost at the lower price break. Compare the two calculations. Should Tweedy continue to order at EOQ or change the order quantity to take advantage of a lower price? 4. The demand for the "Flying X" guitar has increased due to a rumor that Dr. Kirchoff owns and plays one in his popular band. As a result, Tweedy guitars has been able to negotiate a price discount on the wah-wah pedal. Using the following information, determine if ordering at EOQ or at the price discount is less expensive. - Annual demand: 4,500 pedals (assume 200 days/year and constant demand) - Holding cost (annual): $15 - Setup cost per order to replenish inventory: $55 - Assume lead-time constant at 3 days