1. A company will sell remote control devices online. Expected yearly demand is 3000 units and it is sold per 250TL. The controllers can be purchased from supplier A. Ordering cost is 40 TL and annual holding cost is 25% of the price a. Calculate the economic order quantity for the company. (15 points) b. Calculate the number of orders per year. (5 points) c. List the assumptions of EOQ model that you used to calculate the value in part A. (5 points) 2. A company that produces hair dryers makes its heating elements in house. Those pieces can be produced at a rate of 800 per day. Their total hair dryer demand reaches to 50000 per year and the company operates 250 days in a year. Then it can be concluded that they can use 50000/250-200 units/day in order to ship to the customers. The assembly continues whole year uniformly. Carrying(holding) cost is 0,5 TL and setup cost for a run is 35 TL a. Compute the economic production quantity (EPO). (15 points) b. Compute the cycle time. (5 points) c. Compute the run time. (5 points) 3. A restaurant uses an average of 8 jars of a special sauce every day. When they place an order, the jars arrive to the restaurant in a day (lead time is 1 day). Daily usage of sauce has a standard deviation of 3 jars. They think their demand during the lead time can be modelled with normal distribution. The manager is willing to accept no more than a 10 percent risk of stockout during lead time which is two weeks. Assume the distribution of the usage is normal and calculate at which level of inventory a new order needs to be placed i.e. calculate the reorder-point(ROP)). (25 points) 4. The friendly sausage company orders the sausages that they use at the end of each week. They consume on average 5 kg sausage per day with a standard deviation of 2.5 kgs. It takes 1.5 days to get their orders from the butcher outside the city. This week they start with a sausage stock of 10 kgs in their fridge. If they want to keep their service level at 99% how much order they should place at the end of each week? (25 points)