Waterworks is the local distributor of the sources of Primo cold water. An Primo cold water dispenser costs Waterworks $320, and (without considering inventory costs) Waterworks estimates that it would obtain a gross profit of $80 for each dispenser sold. The cost of making an order of Primo dispensers is $100, and Waterworks employs a 20% annual inventory maintenance cost rate in relation to the purchasing price (and not its sales price). If a stockout should occur in Waterworkss inventory, Waterworks estimates a cost of $50 per unmet dispenser throughout the planning horizon. The weekly mean demand is 75 units, and the supply time is considered null. By considering a 52-week year, work out: a. The optimum inventory policy for Primo dispensers. [5] b. The number of weeks between two consecutive orders. Graphically draw the inventory model employed. [6] c. The percentage of customers whose order will be delayed or rescheduled. [3] d. The maximum number of weeks that an unsatisfied customer must wait. [2] e. Waterworkss annual profit from selling Primo dispensers. [4]

Waterworks is the local distributor of the sources of Primo cold water. An Primo cold water dispenser costs Waterworks $320, and (without considering inventory costs) Waterworks estimates that it would obtain a gross profit of $80 for each dispenser sold. The cost of making an order of Primo dispensers is $100, and Waterworks employs a 20% annual inventory maintenance cost rate in relation to the purchasing price and not its sales price). If a stockout should occur in Waterworks's inventory, Waterworks estimates a cost of 350 per unmet dispenser throughout the planning horizon. The weekly mean demand is 75 units, and the supply time is considered null. By considering a 52-week year, work out: . The optimum inventory policy for Primo dispensers. 16 b. The number of weeks between two consecutive orders. Graphically draw the inventory model employed, 16 c. The percentage of customers whose order will be delayed or rescheduled. 3 d. The maximum number of weeks that an unsatisfied customer must wait. 121 e. Waterworks's annual profit from selling Primo dispensers. 14