Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4? A) $849 B) $1, 200 C) $1, 889 D) $2, 267 E) $2, 400 The following question relates to the information below: Famous Albert prides himself on being the Cookie King of the West. Small, freshly baked cookies are the specialty of his shop. Famous Albert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand, he estimates demand for cookies as Each dozen sells for $1.50 and costs $1.00, which includes handling and transportation. Cookies that are not sold at the end of the day are reduced to 0.20 and sold the following day as day-old merchandise. If the company decides to bake 800 dozens each day, what would be its expected profit? A) 153 B) 188 C) 305 D) 340 E) 400 Since forecasts are not wrong, the forecasts do not have to be accompanied by a measure of forecasts error. True False Daily demand for a product is 150 units, with standard deviation of 30 units. The review a period is 10 days and the lead time is 6 days. At the time of 80 units are in stock. If only a 5 percent risk of stocking out is acceptable, what is the order-up to level of inventory? A) 2581 B) 2597 C) 2600 D) 2680 E) 3300