1. Henry Crouch's law office has traditionally ordered ink refills of 60 units at a time. The firm estimates that carrying cost is 40% of the 10 unit cost and that annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? 2. The monthly demand for a part is 1,500 units. The order cost is 285 per order, the holding cost is 56 per unit per year, and the part cost is 850 per unit. The firm operates twelve months per year. Compute the (a) EOQ, (b) annual holding cost, (c) annual order cost, and (d) annual total inventory cost (including the cost of 1,500 units). 3. Please use the following data set to answer the following questions (i, ii and iii). Data Set: Period Sales Volume 1 1234567890 10000 12400 14250 15750 20500 18500 15750 20500 21500 22550 i. What would be the forecast for period 7 using a four period moving average? ii. What would be the forecast for period 6 using a five period weighted moving average? The weights for each period are 0.05, 0.10, 0.20, 0.30, & 0.35 from the oldest period to the most recent period, respectively. iii. What would be the forecast for period 6 using the exponential smoothing method? Assume the forecast for period 5 is 14000. Use a smoothing constant of a = 0.4.