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Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $25 per delivery (no matter how much is delivered) and $1.25 per gallon. Joe's annual holding cost per unit is 25 percent of the price per gollon. Joe uses 200 gallons of mait per week. a. Suppose Joe orders 750 gallons each time. What is his average inventory (in gal)? galions orders gallons (Round your answer to 2 decimal places.) b. Suppose Joe orders 1250 gallons each time. How many orders does he place with his supplior each year? C. How many gallons should Joe order from his supplier with each order to minimize (Round your answer to 3 decimal places.) d. Suppose Joe orders 2500 gallons each time he places an order with the supplior. What is the sum of the ordering and holding costs per gallon? per gallon (Round your answer to 2 decimal places.) Suppose Joe orders the quantity from part (c) that minimizes the sum of the ordering and holding costs each time he places an order with the supplier. What is e. the annual cost of the EOQ expressed as a percentage of the annual purchase cont? f. If Joe's supplier only accepts orders that are an integer multiple of 1000 gallons. gallons Joe's suppler offers a 3.00 percent discount if Joe is willing to purchase 8000 9. gallons or more. What would Joe's total annual cost (purchasing. ordering. and holding) be if he were to take advantage of the discount? Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon. Joe's annual holding cost per unit is 25 percent of the price per gollon. Joe uses 275 oallons of mait per week. a. Suppose Joe orders 125 gallons each time. What is his average inventory (in gal)? (Round your answer to 2 decimal places.) b. Suppose Joe orders 1250 gallons each time. How many orders does he place with gallons gallons c. How many gallons should Joe order from his s (Round your answer to 3 decimal places.) d. Suppose Joe orders 2500 gallons each time he places an order with the supplier. per gallon (Round your answer to 2 decimal places.) Suppose Joe orders the quantity from part (c) that minimizes the sum of the ordering and holding costs each time he places an order with the supplier. What is the annual cost of the EOQ expressed as a percentage of the annual purchase cost? f. If Joe's supplier only accepts orders that are an integer multiple of 1000 gallons, gallons Joe's supplier offers a 3.00 percent discount if Joe is willing to purchase 8000 . gallons or more. What would Joe's total annual cost (purchasing, ordering, and holding) be if he were to take advantage of the discount? Explanation a. 63 . Average imventory =1250.563 b. 11.44. Oeders = (275 per week = 52 weeks )/1,250=11.44 c. 1.827. Order size =5 Sart (23527552) f (1.200.25)=1827 d. 50.0402.(275 per week 52 weeks )(2,500=5.72 orders. Annual ordes cost =5.72$35=$200.20. Annual holding cost =0.5(2,5001.20= 0.25)=5375.00 Annual order + holding costs =200.20+375.00=$575.20. (Annual order + holding costs) / annual demand = cost per gallon. 5575.20/14.300= 500402 \$274.00. Armaal crder 4 nolding costs =274.00+274.00=$548.00. Annual purchase cost =$1.2014,300=$17,40.$548.00 Arinial order + holding costs f. $17460=313% t. 2.000. From part c the EOQ=1,827. Foe 1,000 order quantity, Arnual order cost =14.30 orders $35=$500.50. Arnual holding cost =0.5 (1.000 * 1.200.25)=5150.00 Arnual arder + holding costs =500.50+150.00=$650.50 : For 2,000 order quantity, Annual arder cost =7.15 orders $3.5=$250.25. Annual holding cost =0.5(2,0001.200.25)=$30000. Annual order + holding costs =250.25+300.00=5550.25. An order size of 2.000 has the lowest annual order + holding casts, 9. 17,872. For 8,000 oeder quantity, Arnual order cost =(4,300/8,000) oeders $35=$62,56. Annual holding cost =0.588,000115=0,25)= $1.04,00. Annual order + holding costs + purchasing cost =62,56+1,164.00+16,64520=$17,872