Question: Problem 2: The next two questions use the following information. A grocery store uses 500 boxes of plastic bags per month. The boxes cost $20

Problem 2: The next two questions use the

Problem 2: The next two questions use the following information. A grocery store uses 500 boxes of plastic bags per month. The boxes cost $20 each, placing an order for plastic bags costs $15, and holding costs are $4 per box per month. Using the basic EOQ model, what are: a) The economic order quantity? b) The average inventory level? c) The total monthly holding cost? d) The total monthly ordering cost? Problem 4: A manufacturer produces pencils, which it sells for $20 each. The production rate is 400 per day. The monthly demand for umbrellas is 2100 (and so usage per day is 70). Setup cost is $60 and holding cost is $1 per pencil per month. What are: a) The economic production quantity? b) The average inventory level? c) The total monthly holding cost? d) The total monthly setup costs? Problem 6: A medical store orders latex gloves in lots of 100 boxes. Inventory is depleted at a constant rate and orders are placed so that the new gloves arrive when the inventory of gloves reaches 30 boxes. What is the average inventory level over time? Problem 12: A car manufacturer requires tires. Lead time is known to be constant at three days. Inventory consumption is normally distributed with a mean of 600 tires per day and a standard deviation of 200 tires. If the manufacturer wishes to avoid a stockout with probability P(Z

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