1) What is the new value of the objective function if the coefficient of X2 is increased by 1 and the coefficient of X3 is decreased by 2 at the same time?

a) 50500

b) 48500

c) Need to resolve the model to calculate.

2. In inventory management, backorder cost belongs to which cost category?

a)Setup costs

b)Inventory-holding costs

c)SKU purchase costs

d)Stockout costs

e)None of the above

3.A convenience store needs to order bottled water from its vendor. The annual demand is 50,000 bottles. Set up cost is $ 100 per order. The annual inventory holding cost is 1% of the purchase price. The purchase price is $ 2.50 per bottle. What is the optimal order quantity the convenience store should place?

a) 20,000

b) 5,000

c) 5,774

d) 580

e) 2,000