Could people help me for b and c Better$-$than$-$Most Buy maintains an inventory of three different headsets, Models A$,$ B and C$.$ The store

pays the manufacturer $$80,$$$110,$$$40$ for these three models, respectively. Each order incurs a fixed

cost of $$40$ in order processing, shipping, etc. and requires a $2-$week lead time. The store estimates that

it's cost of capital is $\%17$ per year and it estimates its other holding costs $($warehouse space, insurance,

etc.$)$ at $$1$ per headset per month. The demand for the three headset models A$,$ B and C are $40$ per

week, $60$ per week and $3$ per week, respectively.

a$)$ Using the EOQ model, calculate the optimal order quantity, reorder interval, reorder point and

total average cost per year for each item SEPARATELY. Fill in the following table and calculate

the total annual cost for the three models.

b$)$ The manufacturer has indicated that the $$40$ wold only be charged once for the multiple models

ordered in the same order to incentivize coordination benefits due to share of shipping trucks.

The store manager has heard about the use of power$-$of$-$two policies in theses cases and has

asked you to find the best power$-$of$-$two policy $($call if P$2)$ that you can use. The manufacturer is

willing to work with a base period of a week $($i$.$e$.,$ the shortest shipping interval is a week$).$

Calculate the best power$-$of two policy for these three items and calculate the overall cost for

maintaining these three items with this policy. Note that you will need to identify the "cycle" in

your system, calculate the total cost over three items per unit time $($i$.$e$.,$ year$).$ This is because

some of the order costs will be "shared" where$/$if you are ordering multiple models in a week.

Fill in the following table and indicate the TOTAL annual cost across all three models.

c$)$ How much is the difference between the two cases? Sometimes, the supplier may not allow the

sharing of the order cost between multiple items. That would mean that the P$2$ policy would

have a higher cost, but we know that the worst case bound is that that policy would at most be

$6\%$ worse than the use of EOQ values for the items. Discuss what types of reasons would compel

you to coordinate orders even if the manufacturer was still charging the same fixed cost

structure.