Question: ( 2 0 points ) Consider the same setting as Problem 2 ( with no backorder ) and suppose that the steel supplier offers the

(20 points) Consider the same setting as Problem 2(with no backorder) and suppose that the steel supplier offers the auto manufacturer a price of $1490 per ton of steel if Q1200 tons; $1220 per ton if 1200Q2400, and $1100 per ton if Q2400. The annual holding cost rate, i, is 0.25(as a percentage of the purchase cost). Calculate Q** and C(Q**) for the all-units discount structure.
(20 points) The Pratt & Whitin Company, which manufactures aircraft engines, needs to decide how many units of a particular bolt to order in order to build engines over the next 4 months. Orders for engines are placed over a year in advance, so the company knows its near-term demand exactly; in particular, the number of engines to produce in the next 4 months will be 150,100,80, and 200 in months 1 through 4, respectively. Each engine requires a single bolt. Orders for bolts incur a fixed cost of $120, and bolts held in inventory incur a holding cost of $0.80 per bolt per month. Find the optimal order quantities in each month and the optimal total cost. [Hint]: Apply Wagner-Whitin Algorithm.
 (20 points) Consider the same setting as Problem 2(with no backorder)

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