Question: Problem 1. Inventory control: EOQ A company makes bicycles. It produces 450 bicycles a month It buys the tires for bicycles from a supplier at

Problem 1. Inventory control: EOQ A company makes bicycles. It produces 450 bicycles a month It buys the tires for bicycles from a supplier at a cost of $20 per tire. The company's inventory holding cost is estimated to be 15% of cost and the ordering is $50 per order, a. Calculate the EOQ In this problem: D - anual demand 2 tires per bicycle) x (450 bicycles per month) x (12 months in a year) - 10,800 tires Ordering cost per order Holding cost per unit ECO (round The company should order about number) tires cach time it places an order b. What is the number of orders per year! Number of orders per year c. Compete the average annual ordering cost. Average annual ordering cost d. Compute the average inventory. Average inventory e. What is the average annual carrying cost? Average annual holding cost r. Compute the total cost. Total cost Answer all questions below: Problem 2. What is inventory? Problem 3. Why is inventory necessary! Problem 4. What are the disadvantages of holding inventory? Problem S. How much Inventory should an operation hold? Problem 6. When should an operation replenish its Inventory? Problem 7. How can inventory be controlled? 1

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