Question: Problem #3: This is problem 12.19 in the book: I'm making some changes to it. 30 points. 12.19 Radovilsky Manufacturing Company, in Hayward, California, makes

Problem #3: This is problem 12.19 in the book:

Problem #3: This is problem 12.19 in the book: I'm making some changes to it. 30 points. 12.19 Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,000 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $50. The cost of each light is $1. The holding cost is $0.10 per light per year. (a) First, assume that Radovilsky now imports its flashing lights from Helsinki Photonics at a cost of $100/order. Thus, the Instantaneous EOQ model applies instead. Ignore the $1.00 cost of each light. What is the optimal Quantity Q* and the Total Annual Inventory Cost for that Q*? Average Holding Cost per year? Order Cost per year? (b) In addition, tell me the time between orders. (c) Finally, suppose that I tell you that Radovilsky only has room for 5000 lights in their warehouse. Will the Q* from a) cause a maximum inventory level greater than 5000

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