1) Make calculations for given information: Demand is $ 7000 per month. Setup cost is $40 and holding cost is $2.5 per unit per month. a) What is EOQ? b) If holding cost doubles how it will affect your answer? c) If holding cost drops half how it will affect your answer? 3) Calculate below issues: Thomas Ltd. has received the following estimates of demand requirements: July Aug. Sept. Oct. Nov. Dec. 1,500 800 1,400 1,800 1,600 1,300 Given details: 1) Inventory carrying cost-5$/unit; 2) regular production cost-4$/unit; 3) hire cost- 10$/unit; 4) lay-off cost-10$/unit; 5) Subcontractor cost is $40/unit a) Produce at a steady rate of 1,000 units per month and give left amount to subcontract. Initial stock-500 units. b) Vary the workforce, to produce monthly demand by receiving and firing employees. Initial stock-0 units. 5) Decision-making: Thomas wants to offer breakfast as supplier to hotel. He has two choices. Either to have disposable dishes or he can use permanent-use dishes. One set of disposable dishes make 0.5 EURO. If he will choose permanent-use dishes of course has to hire one person for washing them who will cost 15 EURO per day. He has an opportunity if will order more than 35 disposable dish sets it will cost 0.4 EURO for him. Rashad knows demand per day based on last couple of weeks. Which action you advise for him by knowing demand per day? Alf 20 people will come on Monday b) If 32 people will come on Tuesday c) If 36 people will come on Wednesday