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QUESTIONS: 1 . A retail chain has 6 stores in a region supplied from 3 supply sources. Trucks have a capacity of 2 5 ,

QUESTIONS:1.A retail chain has 6stores in a region supplied from 3 supply sources. Trucks have a capacity of 25,000 units and cost $(1000+3*X)per load plus $(100-X/2)per delivery. The cost of holding one unit in inventory at retail for a year is $1.5. The managers will set upmilk runs from suppliers to retail stores. Assume that all trucks travel full. Suppliers are considering whether to run a milk run to 2 stores or 3stores on each truck. Determine a demand threshold in selection of the two options given.2.Weekly demand for motors is normally distributed with a mean of 1,500 and a standard deviation of (1,000+X). Motors are currently assembled in Taiwan and delivered at a cost of (1,900+3*X)$/motor. The supplier takes fourweeks to supply an order. A domestic manufacturer has offered to supply motors with a lead time of 1.5 weeks on averageat a cost of (2,150+X)$/motor. The motor manufacturer is targeting a CSL of 99.5percent and monitors its inventory continuously. The manufacturer incurs a holding cost of 30%. Should the manufacturer accept the local suppliers offer?3.Demand for specific a spare part is (20,000+10*X)boxes per month. The holding cost is 25% per year. Eachorder incurs a fixed cost of $1,000. The supplier wants to offer aquantity discount pricing scheme with a price of $5 per box for the first 30,000,a price of $4.90 per unit for the quantity between 30,000 and 50,000, and $4.70 per unit for the quantity above 50,000 units. a.Analyze all unit quantity discount systemfor this case.b.Analyzethe marginal unit quantity discount systemfor this case.c.Compare two systems and interpret.4.STGcompany has introduced a new device which is sold through aretailerstore. The store managerhas estimated that demand will depend on the final retail price paccording to the demand curve: =1,500,000+201,500. The production cost for STGis $200per product.What wholesale price should STGcharge?

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