a$)$ A food processor uses approximately $27,000$ glass jars a month for its fruit juice product. Because of

storage limitations$,$ a lot size of $4,000$ jars has been used. The monthly holding cost is $18$ cents per jar, and

reordering cost is $$60$ per order. The company operates an average of $20$ days a month.

i$)$ What penalty is the company incurring by its present order size?

ii$)$ The manager would prefer ordering $10$ times each month put would have to justify any change in order

size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost

would enable the manager to justify ordering every other day?

iii$)$ Suppose that after investigating ordering cost, the manager is able to reduce it to $$50.$ How else could

the manager justify using an order size that could be consistent with ordering every other day?

b$)$ The demand for the gear assembly for a period of $10$ weeks is given below:

Currently there are $120$ gear assemblies on hand. Production is planned by using a fixed order period

method of two periods. The lead time is two periods. Determine the planned order release schedule.