Question: 2. [5 pts] A company places orders optimally based on the Economic Order Quantity model. Compared to last year, this year their demand has increased

2. [5 pts] A company places orders optimally

2. [5 pts] A company places orders optimally based on the Economic Order Quantity model. Compared to last year, this year their demand has increased 8-fold while the cost of capital has doubled due to shortage of cash. The company wants to manage their ordering quantity optimally, and the operations manager states that they should quadruple their order quantity in comparison to last year's order quantity. Is the operations manager right? Circle One: YES or NO 3. [4 pts] If a retailer orders 250 units every 5-weeks. What is the average inventory and the average time a unit spends in inventory? Show Calculation/ Explanation k 4. [4 pts] If a retailer of a short life-cycle product has an optimal customer service level that is less than 50%, that means the retailer's overage cost is smaller than the underage cost. Show Calculation/ Explanation

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