1-4 please!?

w Yu-l.ee, Reginald T. "Proper 1 except COLE L . BOQ? (le might be used for so lay out all comes intulbule CASE CASE 8.1 LOW NAIL COMPANY After making some wise short-term investments at a race track, Chris Low had some additional cash to in- vest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 keps, and they were sold to retail customers in an even How Low was uncertain how many nails to order at any time. Initially, only two costs concerned him: order processing costs, which were 560 per order without regard to size, and warehousing costs, which were S1 per year per kog space. This meant that Low had to rent a constant amount of warchouse space 2. Assume all conditions in question 1 hold, supplier now offers a quantity discount in the form absorbing all or part of Low's order processing a orders of 750 or more kegs of nails, the supplier i all the order processing costs; for orders between 2 749 kegs, the supplier will absorb hall. What's questions) 3. Temporarily, ignore your work on question 2. Awameha Low's warehouse offers to rent Low space on the the arme number of kegs Low will have in stock, The than on the maximum number of kegs low wooded room for whenever a new shipment arrived. The charge per keg remains the same. Does this change the answer to question 1? If so, what is the new answer 4. Take into account the answer to question 1 and the sup plier's new policy outlined in question 2 and the watch new policy in question 3. Then determine Low's new ECG 5. Temporarily ignore your work on questions 2, 3, and 4 Low's luck at the race track is over; he now must borrow money to finance his inventory of nails. Looking at the to ation outlined in question 1, assume that the wholesale cat of nails is $40 per keg and that Low must pay interest at the rate of 1.5 percent per month on unsold inventory Whats his new EOQ? 6. Taking into account all the factors listed in questions 1,23 and 5, calculate Low's EOQ for kegs of nails. for the year, and it had to be large enough to accommo- date an entire order when it arrived Low was not wor- ried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low bought his nails on a delivered basis. QUESTIONS 1. Using the EOQ methods outlined in the text, how many kegs of nails should Low order at one time