Problem $2(15$ points$)$

The small boatyard built $156$ epoxy kayaks last year. Each of these requires $12$ kg of epoxy, purchased in $6-$kg barrels at $$170$ each, with a freight cost of $$18$ per shipment. The annual carrying cost is estimated to $20\%$ of the value.

If the purchase policy is to buy $20$ barrels each time, how much time can be spent on administrative work if the order quantity is considered optimal? The boat$-$builder charges $$25/$hour$.$

If time spent is $30$ minutes, what would be the optimal order quantity?

Calculate the EOQ for the workbooks.

What are the annual holding costs for the workbooks?

What are the annual ordering costs?

If D$=10,000$ per month, S$=$$$40$ per order, H$=$$$2$ per unit per year.

What is the EOQ?

How does your answer change if the holding cost doubles $($i$.$e$.,$ $$4)?$