Question: please answer 2 questions QUESTION 13 + Amy drinks 5 capsules of coffee every week (assuming 50 weeks in a year). Each capsule costs S1,
please answer 2 questions
QUESTION 13 + Amy drinks 5 capsules of coffee every week (assuming 50 weeks in a year). Each capsule costs S1, and the delivery fee is $5 per order. The annual holding cost rate is 20%. The coffee manufacturer provides a special offer the price of each capsule becomes $0.98 if the order quantity is at least 80 capsules. Amy, therefore, conducts the following analysis: STEP 1: The EOQ without the discount is around 112 units, and the corresponding minimum ordering + holding cost is $22.36. STEP 2: The ordering + holding cost with the quantity discount is K*R/80 + h_new*80/2 = $23.47. STEP 3: The additional ordering + holding cost to get the discount offer is $23.47 - $22.36 = $1.11. STEP 4: The additional saving in the purchasing cost is R*($1 - $0.98) = $5. According to Amy's analysis, she decides the quantity = 80 to obtain the discount, but the decision is not optimal. Please choose the earliest step that Amy makes a mistake. Step 1 Step 2 Step 3 Step 4 QUESTION 14 John sells decorated eggs on Easter. Each egg costs him $2, and John can sell the decorated eggs for $5 each, but the unsold eggs have So salvage value, John knows that the demand follows the normal distribution with mean = 80 and standard deviation = 12. According to the newsvendor model, what is the optimal number of eggs John should prepare? 83 O. 86 78 75
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