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Exhibit 1. The Super Discount store (open 24 hours a day, every day ( 365 days) sells 8-packs of paper towels, at the rate of approximately 420 packs per week. Because the towels are so bulky, the annual cost to carry them in inventory is estimated at $0.50. The cost to place an order for more is $20, and it takes four days for an order to arrive. What is the cycle time? a) 25 b) 17 c) 22 d) 15 Exhibit 1. The Super Discount store (open 24 hours a day, every day ( 365 days) sells 8 -packs of paper towels, at the rate of approximately 420 packs per week. Because the towels are so bulky, the annual cost to carry them in inventory is estimated at $0.50. The cost to place an order for more is $20, and it takes four days for an order to arrive. What is the total cost? a) 481 b) 330.5 c) 1222 d) 661 Jones Manufacturing Inc. purchases a component from a Chilean supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20 percent. The company's order cost is $30.00. If the company decides to order 1,750 units each time it places an order, what will be the ordering cost of this policy? a) $140 b) $300 c) $500 d) $450 Question 29 (5 points) Which one is CORRECT about inventory models? a) At the optimal order quantity for the quantity discount model, the sum of the annual holding and ordering costs is minimized. b) For the production lot size, Q, the average inventory is one-half the maximum inventory, or 1/2Q. c) Safety stock depends on the variability of demand during lead time. d) All of the above e) None of the above Question 30 (5 points) The objective of the EOQ with quantity discounts model is to a) minimize annual purchase cost. b) balance annual ordering and holding costs. c) determine the minimum order quantity required for the maximum discount. d) minimize the sum of annual carrying, holding, and purchase costs