Problem 1: Assume that a hospital consumes 2600 (D) Ventoline inhalers last year and it is estimated that same number of inhaler will be used this year in the diagram below, demonstrate the consumption of medicine assuming that the consumption rate remains the same throughout the year and all required inhalers available at the beginning of the year. VIII. If there are following costs: each Ventoline costs 56 the cost of ordering inhalers (excluding the inhalers' purchase price regardless of the number inhalers purchased is $40 per order (A) There is a holding (H 5 0.5) cost per item that corresponds to the average inventory of on item(Q 01/20/21 a) What is the cost function for the purchase of Ventoline inhalers? b) How many Ventoline inhalers should be purchased each time that the order is made for it? c) How many times Ventoline inhalers need to be ordered annually? IX. If it takes three weeks to receive order from the supplier of the medicine, then at what stock level, the hospital should order (reorder point? X. If the hospital follows this ordering policy, discuss the problems that might be faced? What are possible solutions? XI. What are the advantages and disadvantage of this method? 2 Page