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Question 8) The company uses 1,000 liters of methanol each month for his chemical production activities, which they buys at $5.0 per liter. Company replenishes
Question 8) The company uses 1,000 liters of methanol each month for his chemical production activities, which they buys at $5.0 per liter. Company replenishes methanol inventory (i.e., order from a supplier) using an EOQ value of 2,000 liters, which was calculated assuming an annual interest rate of 12%. a) Calculate the fixed ordering cost that was used in determining the EOQ value. (K=$100) b) Heisenberg received an offer from a wholesaler such that he will be charged $4.0 per liters if he purchases methanol in quantities of 3,000 liters or more. Find Heisenberg's new optimal ordering quantity. Should he accept this offer? If so, how much can he save per year? (Q=3000,Saving=$12000) c) The company later realized that they misunderstood the offer. The discount will apply only to amounts ordered over 3,000 liters (i.e., the unit price for the first 3,000 liters will still be $5.00 ). Find the company's new optimal ordering quantity. Should this offer be accepted, and if so, how much can be saved per year (7044 dollars would be saved annually)
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