Answer #2 Please!

Page 3 TIL Quantitative Questions (Credit will be given only if supporting work is done appropriately and legibly.) 1. Suppose that you are the manager of QM Manufacturing Company that uses 800 boxes of specific parts per year. The supplier quotes you a price of $8.50 per box for an order size of 499 boxes or less, a price less, a price of $8.00 per box for orders of 500 to 1499 boxes, and a price of $7.50 per box for an order of 1,500 or more boxes. You assign a holding cost of 25 percent of the price this inventory. What order quantity would you use if the objective is to minimize total annual costs of holding, purchasing, and ordering? Assume ordering cost is $200/order. Draw a total cost graph to support your calculations. (12 points) 2. Four samples of three observations each have been taken for a production process, with actual measurements in centimeters) shown below. Construct three-sigma control charts. Is the process in control? (12 points) 2 30 31 28 27 25 28 30 29 27