Problem 1: The demand for an item each cost 2 S, 2000 unit per year, the ordering cost is 20 $. inventory carrying charge is 40% based on average inventory per year, stock out cost is 15 $. per unit of shorted incurred. What is the optimal order quantity? What is the maximum shortage that will occur? What is the maximum inventory level that will occur? Problem 2: A Mercedes dealer must pay for each car purchased. The annual holding cost is estimated to be 40% of the dollar value of inventory. The dealer sells an average of 500 cars per year. He believes that demand is backlogged but estimates that if he is short one car for one year he will lose $20,000 worth of future profits. Each time the dealer places an order for cars, ordering cost amounts to $10,0000. How much they must pay for each car purchased so that the optimal total cost is 20,25000 $