Excel Mon 1:06 AM E File Edit View Insert Format Tools Data Window Help HE AutoSave OFF Lastname_ISE350FINAL-2 Home Insert Draw Page Layout Formulas Data Review View Tell me Share X Calibri (Body) Insert v 12 ab = = General 28- O 5 Paste GO BIU V A~ = .00 0 Ideas $ % ) 2. Delete Format Conditional Format Cell Formatting as Table Styles Sort & Filter Find & Select H6 Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? fx B D E F H J L M N O Ebay purchases t-shirts with the company's logo from a vendor in India. The vendor sells the t-shirts to Ebay for the price of P dollars a piece. Shipping from India to California costs S dollars per order including transportation and inspection. The annual holding cost for a t-shirt is calculated as 20% of the purchase cost. Ebay estimates that employees purchase 4000 t-shirts from the company in the coming year (2021). a)(3 points) Determine the optimal order quantity using the basic economic order quantity model. b)(7 points) The Indian vendor has recently offered a 2% discount on the purchase price if Ebay orders 500 or more but less than 2000 at a time, and a 4% discount if Ebay orders 2000 or more at a time. As a purchasing manager at Ebay would you take one of these offers? If so, what is the new optimal order quantity, and if not, why not? The same holding cost from part a can be used in this part. c)(3 points) Based on your answer in part b, how many orders will there be in a year? What is the annual average inventory level? d)(2 points) Based on your answer in part b, what is the reorder point if the lead time is L business days? Assume there 3 are 260 business days a year. 4 5 P ($/piece) P ($/piece) 6 s($/order) 129 s($/order) 7 h 8 D 4000 D 9 L (business day) 5 L (business day) 10 11 12 Instructions Problem 1 Problem 2 Problem 3 Problem 4 Prolem 5 + 31 0.2 h ! W 53,271 14 A 09 P W WW