Q2. (50 pts) A raw material, which will used during production, is purchased from an outside supplier. The company wants to make a purchasing plan for the next 4 months to determine how much and when to order to obtain the optimal minimum total cost which includes purchasing, ordering and inventory holding cost. The monthly demands for the raw material are D: D: D: D units respectively in the next 4 months where DDDD It costs Sh.Sk. Steto keep one unit of this raw material in their warehouse for one month, during month 1, 2 and 3. respectively. Additionally, h; +h; # Note that inventory holding cost is charged based on ending inventory (So no need for hesince the demand of month 4 will be met in month 4 and no ending inventory will be left at the end of month 4) Unit ordering cost is fixed and represented by S4 for all months. Let SP. SPA SPA SP represent the unit purchasing cost for the raw material for months 1. 2. 3. 4. respectively. Moreover. P, P + P + Pi. a) (35 points) Find the optimal lot sizing policy (when and how much to order). If there is more than one optimal policy, write them separately. b) (15 points) Compute the optimal total cost by breaking it down into 3.components and computing the cast for each individually purchasing cesti) ordering costi) inventory holding cost if there is more than one optimal solution, write them separately.) Before solving the question, fill in the following table by selecting intoner values from the given intervals and copy only the 1 and 2 columns into your answer sheet. While selecting the values, make sure you consider the given specifications in the problem statement Parameter Interval Selected value 1500, 1.000] D D: 1500, 1,000) D 1500 1.000 1500 1.000] D 11:53 11:51 11:51 4 [100: 2001 P 15:10 P S: 101 15:103 P P 5:10 Q2. (50 pts) A raw material, which will used during production, is purchased from an outside supplier. The company wants to make a purchasing plan for the next 4 months to determine how much and when to order to obtain the optimal minimum total cost which includes purchasing, ordering and inventory holding cost. The monthly demands for the raw material are D: D: D: D units respectively in the next 4 months where DDDD It costs Sh.Sk. Steto keep one unit of this raw material in their warehouse for one month, during month 1, 2 and 3. respectively. Additionally, h; +h; # Note that inventory holding cost is charged based on ending inventory (So no need for hesince the demand of month 4 will be met in month 4 and no ending inventory will be left at the end of month 4) Unit ordering cost is fixed and represented by S4 for all months. Let SP. SPA SPA SP represent the unit purchasing cost for the raw material for months 1. 2. 3. 4. respectively. Moreover. P, P + P + Pi. a) (35 points) Find the optimal lot sizing policy (when and how much to order). If there is more than one optimal policy, write them separately. b) (15 points) Compute the optimal total cost by breaking it down into 3.components and computing the cast for each individually purchasing cesti) ordering costi) inventory holding cost if there is more than one optimal solution, write them separately.) Before solving the question, fill in the following table by selecting intoner values from the given intervals and copy only the 1 and 2 columns into your answer sheet. While selecting the values, make sure you consider the given specifications in the problem statement Parameter Interval Selected value 1500, 1.000] D D: 1500, 1,000) D 1500 1.000 1500 1.000] D 11:53 11:51 11:51 4 [100: 2001 P 15:10 P S: 101 15:103 P P 5:10