Q2 (20 points) Richardson's hospital consumers 500 boxes of masks on average each week. The price...

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Q2 (20 points) Richardson's hospital consumers 500 boxes of masks on average each week. The price of each box is $50. The cost of placing an order is $250, and the cost of holding a box for a year is 1% of the value of the box. Assume 50 weeks per year. The lead time is week. a. What is the optimal quantity order? (3 points) b. What is the number of weeks that elapse between two consecutive orders? (2 points) c. What is the number of orders placed per year? (2 points) d. What is the total cost of carrying inventory and placing orders? (2 points) e. Suppose that the hospital wants to keep a safety stock of 50 boxes. What would be the re- ordering point? (3 points) Q2 (20 points) Richardson's hospital consumers 500 boxes of masks on average each week. The price of each box is $50. The cost of placing an order is $250, and the cost of holding a box for a year is 1% of the value of the box. Assume 50 weeks per year. The lead time is week. a. What is the optimal quantity order? (3 points) b. What is the number of weeks that elapse between two consecutive orders? (2 points) c. What is the number of orders placed per year? (2 points) d. What is the total cost of carrying inventory and placing orders? (2 points) e. Suppose that the hospital wants to keep a safety stock of 50 boxes. What would be the re- ordering point? (3 points)