please complete A thru C

[40 points] Julia Walters owns and operates one of the largest Mercedes-Benz auto dealerships in Washington, DC. In the past 36 months her sales of this luxury car have ranged from a low of 6 new cars to a high of 12 new cars, as reflected in the following table: Walters believes that sales will continue during the next 24 months at about the same historical rates. Currently, there are 20 new cars on-hand and 14 in-transit, which will be delivered in the next month (available for month 2). Assume that the delivery time (lead time) is 1 month and does not vary over the next 24 months. a. Walters's current policy is to order 14 cars (Q=14) at a time (two full truckloads, with 7 autos on each truck) and to place a new order whenever the inventory position (OH+SRDem BO) reaches 12 autos (ROP=12). Simulate the demand for the cars for the next two years using the information above. How many orders are placed in the next two years? How many outof-stock months are there during the 2 years? b. If Julia Walters establishes the following relevant costs: (1) the carrying cost per Mercedes per month is $600, (2) the cost of a back order (when there is no on-hand stock and still, customer is willing to wait) averages $4,350, and (3) the cost of placing an order is $570. What is the total inventory cost of the policy simulated (Q=14,ROP=12) ? c. Suppose the ordering policy is changed to order 10 cars (instead of 14) and the reorder point is 8 . However, the cost of ordering has been increased to $850 with the cost of lost sales remaining at $4,350. What is the total inventory cost of the policy simulated (Q=10,ROP= 8)? Compare with the inventory cost in (b)