Annual Demand $=200,000$

The order cost $=$ $$100$

Annual holding rate $=25\%$

Price varies depending on the order quantity per the following schedule:

Orders between $1$ to $50,000$ units cost $$11$

Orders of $50,001$ to $150,000$ cost $$10\mathrm{.}75$

Orders greater than $150,000$ cost $$10\mathrm{.}50$

Determine the optimal order quantity using the price discount model discussed in class. Show all your work.

FOR QUESTIONS #$14$ & #$15,$ USE THIS PROMPT:

You purchase a part that has normally distributed demand during the order lead time period. Average demand during lead time is $1000$ units and the std$.$ deviation of demand during order lead time is $50$ units. What is the safety stock and statistical reorder point that results in a service level of $97\mathrm{.}5\%($assume z$=1\mathrm{.}96)?$

Flag question: Question $1$

Question $11$ pts

Calculate the EOQ at a cost of $$10\mathrm{.}50.$ Round order quantities to the nearest whole number.

$3,904$

Flag question: Question $2$

Question $21$ pts

Is the EOQ you calculated at a cost of $$10\mathrm{.}50$ considered feasible?

Group of answer choices

No

Yes

Flag question: Question $3$

Question $31$ pts

Calculate the EOQ at a cost of $$10\mathrm{.}75.$ Round order quantities to the nearest whole number.

$3,858$

Flag question: Question $4$

Question $41$ pts

Is the EOQ you calculated at a cost of $$10\mathrm{.}75$ considered feasible?

Group of answer choices

No

Yes

Flag question: Question $5$

Question $51$ pts

Calculate the EOQ at a cost of $$11.$ Round order quantities to the nearest whole number.

$3,814$

Flag question: Question $6$

Question $61$ pts

Is the EOQ you calculated at a cost of $$11$ considered feasible?

Group of answer choices

Yes

No

Flag question: Question $7$

Question $71$ pts

Determine the order quantity at a price of $$10\mathrm{.}50$ and round to the nearest whole number.

HINT for #$7-9$: You are now determining the set of possible solutions.

If the EOQ at this price is NOT FEASIBLE, then the order quantity will be the first quantity where you can pay this price $($the price break point$).$ If the EOQ is FEASIBLE at this price, then use the EOQ as the order quantity.

Flag question: Question $8$

Question $81$ pts

Determine the order quantity at a price of $$10\mathrm{.}75$ and round to the nearest whole number.

HINT for #$7-9$: You are now determining the set of possible solutions.

If the EOQ at this price is NOT FEASIBLE, then the order quantity will be the first quantity where you can pay this price $($the price break point$).$ If the EOQ is FEASIBLE at this price, then use the EOQ as the order quantity.

Flag question: Question $9$

Question $91$ pts

Determine the order quantity at a price of $$11$ and round to the nearest whole number.

HINT for #$7-9$: You are now determining the set of possible solutions.

If the EOQ at this price is NOT FEASIBLE, then the order quantity will be the first quantity where you can pay this price $($the price break point$).$ If the EOQ is FEASIBLE at this price, then use the EOQ as the order quantity.

Flag question: Question $10$

Question $102$ pts

Calculate the TAIC at the price of $$10\mathrm{.}50$ and at the order quantity you ID$$d in question $7.$ Round answers to nearest whole number. Do NOT include any punctuation $($i$.$e$.$ $ or $,)$

Flag question: Question $11$

Question $112$ pts

Calculate the TAIC at the price of $$10\mathrm{.}75$ and at the order quantity you ID$$d in question $8.$ Round answers to nearest whole number. Do NOT include any punctuation $($i$.$e$.$ $ or $,)$

Flag question: Question $12$

Question $122$ pts

Calculate the TAIC at the price of $$11$ and at the order quantity you ID$$d in question $9.$ Round answers to nearest whole number. Do NOT include any punctuation $($i$.$e$.$ $ or $,)$

Flag question: Question $13$

Question $132$ pts

What is the optimal ORDER QUANTITY based on the TAIC calculations? Round answer to the nearest whole number. Make sure you put in the order quantity, NOT the price or the lowest TAIC. Remember, the optimal order quantity will be the order quantity that yields the lowest TAIC in questions $10-12.$

Flag question: Question $14$

Question $141\mathrm{.}5$ pts

$($Refer to second prompt located in the quiz's instructions.$)$ Calculate safety stock and round answer to the nearest whole number.

Flag question: Question $15$

Question $151\mathrm{.}5$ pts

$($Refer to second prompt located in the quiz's instructions.$)$ Calculate statistical reorder point and round answer to the nearest whole number.