1. For the above problem, with the optimal solution, what will the inventory holding cost be ?

a. 60

b. 563

c. 184

d. 728

e. 194

2. What is the ordering cost at the 51-499 price point at the lowest feasible cost point?

a. 20

b. 189

c. 378

d. 14,628

3. For the above problem, with the optimal solution, they should order quantities of ________ because the total cost is _________?

a. 500 /// 14,123

b. 500 /// 13,867

c. 58 /// 14,135

d. 163 /// 13,867

e. 159 /// 14,628

4. What is the EOQ at the 0-5- price point?

a. 19

b. 50

c. 155

d. 245

Use the following information to answer the following few questions. A particular raw material is available to a company at three different prices, depending on the size of the orders, as follows: 0 to 50 pounds $10.00 per pound 51 to 499 pounds $9.50 per pound 500 or more pounds $9.00 per pound The cost to place an order is $20. Annual demand is 1,500 units. Holding (or carrying) costs is 25 percent of the price per pound