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Problem 10-21 (Algorithmic) Apply the EOQ model to the following quantity discount situation in which D = 450 units per year, C0 = $42, and
Problem 10-21 (Algorithmic) Apply the EOQ model to the following quantity discount situation in which D = 450 units per year, C0 = $42, and the annual holding cost rate is 20%. Discount Discount Category 0rd er Size (%) Unit Cost 1 0 to 99 I] $12.00 2 100 or more 3 $11.54 What order quantity do you recommend? If required, round your answer to the nearest whole number. -x Problem 10*25 (Algorithmic) The Gilbert AirConditioning Companyr is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $75, and it will be sold for $115. Gilbert does not want to carry surplus air conditioners over until the following year. Thus, all surplus air conditioners will be said to a wholesaler for $50 per unit. Assume that the air conditioner demand follows a normal probability distribution with [J = 21 and t7 = 9. Note: Use Appendix B to identify the areas for the standard normal distribution. Round "cumulative standard normal probability" to two decimal places. a. What is the recommended order quantity? Round your answer to the nearest whole number. Problem 1027 (Algorithmic) A perishable dairy product is ordered daily at a particular supermarket. The product, which costs $1.2 per unit, sells for $1.64 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with p = 145 and a = 30. Note: Use Appendix B to identify the areas for the standard normal distribution. a. What is your recommended daily order quantity for the supermarket? Round your answer to the nearest whole number. b. What is the probability that the supermarket will sell all the units it orders? Round your answer to three decimal places. Pu: Stocko ut} ) c. In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate of, say, 25 per unit? What happens to the supermarket order quantity as the rebate is reduced? The lower rebate decreases ' 5/ the quantity that the supermarket should order
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