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Please show your work as these are practice questions I need help understanding how to answer for my exam tomorrow QUESTION 1 A. Economic Order

Please show your work as these are practice questions I need help understanding how to answer for my exam tomorrow

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QUESTION 1 A. Economic Order Quantity ABS Inc buys 4000 boxes per year. The annual holding cost per one unit per year is $90 Admin/paper/communication cost required to execute an order are $70 /order. a. How many boxes (Q=?) should AB8 order at a time? How many times per year should the company order? CA Calculate the demand of wood boxes per day (There are 250 working days/year)? If the lead time for boxes from the supplier is 2 days, what is the ro-order point? Calculate the Total Annual Cost (TAC) for Carrying Cost Calculate the TAC for Ordering Cost Calculate the TAC for both (Carrying and Ordering) Costs B. Uncertainty of Demand Based on the information in the following table, answer the following question: If you use a re-order point of 90 units, what is your probability for a stock-out? Demand during lead time Probability 10% 60 20% 30% 80 25% 10% 100 5%

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