1. (Ch. 4) Consider a process consisting of three resources; each resource is staffed by one worker. - Resource \#1 has a processing time of 5 minutes per unit. - Resource \#2 has a processing time of 4 minutes per unit. - Resource \#3 has a processing time of 2 minutes per unit. Assume each worker gets paid $12 an hour. Each unit is sold for $6 and includes parts that are sourced for $1 which is the variable cost. The company has fixed costs of $10 per hour. Demand rate is assumed as 13 units per hour. Which option is the best in terms of the profit per hour? (Calculate the profit of each option to choose the best one.) - Option \#1: 10% lower material costs (15/100) - Option \#2: 10% lower fixed costs (15/100) - Option \#3: 10% faster at bottleneck (15/100) (Ch. 11) The mean of demand is 1,000 units and the standard deviation of demand in each period is 200 units. Holding an item in inventory for each week cost $1. Orders take 8 weeks to arrive. We want an in-stock probability of 0.99(z=2.33). What is the cost for holding inventory per unit? (25/100) (Ch. 12) A firm purchases an item for $2 and sells 2,000 units per year. It is offered a 5 percent discount if it purchases 1,000 units or more. A firm incurs a fixed order cost of $20 per order and 30 percent annual holding costs. How much does it save each year (including purchasing, ordering, and holding costs) if it purchases enough units to get the discount? (30/100)