Solve problems one and five only.

PROBLEMS 1. A lotion manufacturer's process requires use of a particular oil at the rate of 50o ha The oil is purchased from a wholesaler at a price of S10.50 per barrel. Procuremens 2 weeks, assume there are $2 working weeks per year. Storage cost is S0.50 per t The lotion manufacturer's Operations Supervisor wishes to maintain a safety stock of 4p Current ordering policy is of 2000 barrels per order a. Under the current policy, what would be the ROP? trels b. What would be expected maximum inventory and expected minimum inventory? e 2. A pipe manufacturer requires a chemical for making plastic at the rate of 6,000 gallons cost of keeping the chemical storage includes both the cost of the special security precaute storage space and borrowing money on short-term loans to pay for the purchase; this about S10 per gallon per year. Ordering costs which include cost of special transportation wo to $200 per order. The chemical is bought at s45 per gallon. What are the EOO and Anmual te works Cost? 3. Star is the manager of a specialty home appliance store where a best-selling item is a a "smant teby erator. Annual demand for the item is 240 per year. Each fridge is sold for $3,500 and is from the manufacturer for $2.100. Holding cost is estimated to be 12% and orderin g cost is S70 order a. What should be the order quantity? b. At the end of the year, holding cost was found to be actually 15% instead of the previous estine of 12%. Do they need to change the order quantity? 4. GenZ is a garment manufacturer who sells clothes to many retailers and wholesalers Genu specific button on all their garments. This button usage is at the rate of 2,000 sheets a day Ge purchases these buttons from a supplier at a cost of $1.00 per sheet. The supplier requires $ daysf delivery. Cost of placing an order is $50 and cost of carrying inventory is $.001 per sheet per dy Assume GenZ has 250 working days in a year a. Determine the EOQ and ROP b. What is the maximum number of sheets of buttons held in inventory? c. What should be the ROP if the supplier's lead time increases to 8 days? S. An eyeglass retailer buys lenses from a supplier at $100 each. The retailer orders 250 lens pairs ce year and the ordering cost is $36. Carrying costs per year (based on average inventory) are to be 20% for each pair. The supplier offers a 10% discount on order quantities of 50 or more pairs. Determine the best order quantity and total cost. 6. An electronic store sells 3,000 HD TV sets every quarter of the year. Each TV set costs $270.00. The carrying cost is 2% of the purchase price per unit per year. Each time an