Question: (7 marks) What is the optimal order quantity and the total annual inventory cost at this order quantity? How many times per year would Hampshire

(7 marks) What is the optimal order quantity and the total annual inventory cost at this order quantity? How many times per year would Hampshire Farms place orders using the optimal quantity?

b. (5 marks) Based on the order size they currently use, how many times per year do they have to place orders? How much more is it costing them per year by using this order size?

c. (1 mark) What would you recommend Hampshire Farms to do (re ordering firewood bundles)? B3401 Spring 2022 Term Test #2 Page 6 If Hampshire Farms goes ahead with producing its own firewood, determine the following:

d. (8 marks) What is the optimal production quantity and the total annual cost at this quantity? e. (3 marks) What is the length of a production run and a cycle run for the Hampshire Farms firewood?

f. (4 marks) If Hampshire Farms decides to also produce kindling, can they do this when they are not producing the firewood bundles?

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