Question: Problem 2: The next two questions use the following information. A pharmacy store uses 800 boxes of plastic bags per month. The boxes cost $40

Problem 2: The next two questions use the following information. A pharmacy store uses 800 boxes of plastic bags per month. The boxes cost $40 each, placing an order for plastic bags costs $30, and holding costs are $5 per box per month. Using the basic EOQ model, what are: a) The economic order quantity? b) The average inventory level? ) The total monthly holding cost? d) The total monthly ordering cost? Problem 4: A manufacturer produces tables, which it sells for $30 each. The production rate is 600 per day. The monthly demand for tables is 1500 (and so usage per day is 50). Setup cost is $60 and holding cost is $2 per table per month. What are: a) The economic production quantity? b) The average inventory level? ) The total monthly holding cost? d) The total monthly setup costs? Problem 6: A medical store orders medicines in lots of 300 boxes. Inventory is depleted at a constant rate and orders are placed so that the new gloves arrive when the inventory of medicines reaches zero boxes. What is the average inventory level over time? Problem 12: A car manufacturer requires seat belts. Lead time is known to be constant at three days. Inventory consumption is normally distributed with a mean of 900 seat belts per day and a standard deviation of 100 seat belts, If the manufacturer wishes to avoid a stockout with probability P{z

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