************* PLEASE PROVIDE THE STEP BY STEP SOLUTION AND SHOW YOUR FORMULAS. ************* ~~~~~~~~ SOLVE THE PROBLEM IN A CLEAR AND ORGANIZED WAY ~~~~~~~~ ---> WE WERE GIVEN PARTIAL ANSWERS TO THIS PROBLEM. PLEASE SEE BELOW.

Dominick's supermarket chain sells Nut Flakes, a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 1000 boxes per week. Dominick's has a holding cost of 25 percent and incurs a fixed trucking cost of $200 for each replenishment order it places with Tastee. Tastee normally charges $2 per box of Nut Flakes. Tastee runs a trade promotion, lowering the price of Nut Flakes to $1.80 for a month. 1. What is the optimal lot size for Dominick's without the promotion? Assume 52 weeks in a year 2. what is the optimal lot size with the promotion? 3. what is the cycle inventory without the promotion? 4. what is the forward buy for Dominick's when using the promotion? With PROMO 10,000 $ 200 25% $ 1.80 No PROMO Weekly Demand 1,000 Fixed Order Cost $ 200 Holding Cost 25% Manufacturer's Sale Price to Dominick's $ 2.00 Optimal Lot Size w/o promo 6,450 Optimal Lot Size w/ promo (Eqn 11.16) Cycle Inventory 3,225 Average Flow Time 3.2249 Forward Buy