Question: . Consider the bolt example from Problem 4 yet again, assuming that the demand of 6 0 per week is correct. Now, however, suppose the

. Consider the bolt example from Problem 4 yet again, assuming that the demand of 60 per
week is correct. Now, however, suppose the minimum reorder interval is one month and all
order cycles are placed on a power-of-2 multiple of months (that is, one month, two months,
four months, eight months, etc. in order to permit truck sharing with orders of other parts.
a. What is the least-cost reorder interval under this restriction?
b. How much does this add to the total cost?
c. How is the effectiveness of powers-of-2 order intervals related to the result of the
previous problem regarding the effect of demand forecasting errors?

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