PROBLEM IV (Inventory Control). The annual demand for a special type of perfume sold by a department store is 8300 bottles. The department store buys the perfume bottles from the manufacturing company and each perfume bottle costs $29.00 for the department store. The cost of placing a purchase order is $194.00 for the department store. The inventory carrying cost rate for the department store is 26% of the purchase cost for any item. There are 240 working days per year and the lead time is 4 days. Answer questions 1 through 7. (17) The Economic Order Quantity (Optimal Order Quantity) is: (a) 1223.65 (b) 653.54 (c) 830.00 (d) 793.28 (e) None of the above (18) Suppose you order every time a quantity equal to the EOQ. Then the number of orders placed in a year is equal to: (a) 26.38 (b) 4.89 (c) 32.00 (d) 12.70 (e) 5.64 (19) The cycle time under the EOQ policy is: (a) 18.90 days (b) 10.42 days (c) 5.65 days (d) 2.32 days (e) 4.89 days (20) The re-order point under the EOQ policy is: (a) 105.64 (b) 78.82 (c) 138.32 (d) 112.87 (c) 96.92 (21) Suppose you order every time a quantity equal to the EOQ. Then the total cost of placing the orders and holding the inventory per year is: (a) $4927.65 (b) $2884.69 (c) $3970.50 (d) $6218.04 (e) None of the above (22) Suppose you order every time a quantity equal to 400 instead of the EOQ. Then the total cost of placing the orders and holding the inventory per year is: (a) $9873.60 (b) $4088.90 (c) $7736.44 (d) $5533.50 (e) $3534.82 (23) Suppose you order every time a quantity equal to 400 instead of the EOQ. Then, the increase in total costs (i.e., penalty) per year for adopting this new policy instead of the EOQ policy is: (a) $819.20 (b) $474.65 (c) $336.80 (d) $605.85 (e) $763.25 (24) Suppose you order every time a quantity equal to 800 instead of the EOQ. Then the total cost of placing the orders and holding the inventory per year is: (a) $9873.60 (b) $5028.75 (c) $7736.44 (d) $4124.57 (e) $3534.82 (25) Suppose you order every time a quantity equal to 800 instead of the EOQ. Then, the increase in total costs (i.e., penalty) per year for adopting this new policy instead of the EOQ policy is: (a) $341.28 (b) $237.14 (c) $101.10 (d) $412.72 (e) $538.83