Question: Question 1) Inventory Management Basic EOQ The Knight Company operates 365 days a year and uses 210 liners each day. Using a Continuous Inventory System,

Question 1) Inventory Management Basic EOQ The Knight Company operates 365 days a year and uses 210 liners each day. Using a Continuous Inventory System, Knight orders 10,950 liners at a time. The orders are timed so that the new liners arrive just as inventory runs out (i.e. inventory level = 0). a. If = $1100, what is the total ordering cost for all orders in a year (Annual Ordering Cost)? b. Assume the delivery truck is unloaded instantly when it arrives. What is the maximum inventory level? c. What is the average inventory level? Hint: the company pulls liners from inventory at a constant rate. When Knight places an order for more liners, the supplier is able to deliver the liners exactly 8 days after the order is placed. d. What is the reorder point, R? Normal Curve Areas Z 10.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.0.0000 .0040 .0080 .0120 .0160 .0199 .0239 0279 .0319 .0359 0.1.0398 .0438 .0478 .0517 .0557 .0596 .0636 .0675 .0714 .0753 0.21.0793 .0832 .0871 0910 .0948 .0987.1026 1064 .1103 1141 0.3.1179 .1217 .1255 1293 1331 1368 .1406 1443 .1480 1517 0.4.1554 1591 1628 .1664 1700 1736 1772 1808 .1844 .1879 0.5.1915 .1950 1985 2019 2054 2088 2123 2157 2190 2224 0.6.2257 2291 2324 2357 2389 2422 2454 2486 2518 2549 0.7.2580 2612 2642 .2673 2704 2734 2764 2794 2823 .2852 0.8.2881 2910 2939 2967 2995 3023 30513078 3106 .3133 0.9.3159 3186 3212 .3238 3264 .3289 .3315 3340 .3365 .3389 1.0.3413 3438 .3461 3485 .3508 3531 .3554 .3577 .3599 .3621 1.1.3643 3665 3686 3708 3729 .3749 .3770 3790 3810 3830 1.2.3849 .3869 3888 .3907 3925 .3944 3962 3980 3997 4015 1.31.4032 4049 4066 4082 4099 .4115 4131 4147 4162 4177 1.41.4192 4207 4222 4236 4251 4265 4279 4292.4306 4319 1.5.4332 4345 4357 4370 4382 .4394 4406 4418 4429 4441 1.6.4452 4463 4474 4484 4495 4505 4515 4525 4535 4545 1.71.4554 .4564 4573 .4582 4591 .4599 .4608 4616 .4625 4633 1.80.4641 4649 4656 4664 4671 .4678 4686 4693 .4699 4706 1.91.4713 4719 4726 4732 4738 .4744 4750 4756 4761 4767 2.01.4772 4778 4783 4788 .4793 4798 4803 .4808 48124817 2.1.4821 4826 4830 4834 4838 .4842 4846 4850 4854 4857 2.21.4861 4864 4868 4871 4875 4878 4881 4884 4887 4890 2.31.4893 .4896 4898 4901 4904 4906 4909.4911 .4913 4916 2.41.4918 4920 4922 4925 4927 4929 4931 4932 4934 4936 2.5.4938 .4940 4941 .4943 4945 .4946 .4948 .4949 .4951 4952 2.61.4953 4955 4956 4957 4959 4960.4961 4962 4963 4964 2.71.4965 .4966 4967 .4968 .4969 .4970 4971 4972 .4973 .4974 2.81.4974 4975 4976 4977 4977 4978 4979 4979 4980 4981 2.9.4981 4982 4982 4983 .4984 .4984 4985 4985 4986 4986 3.0.49865.49869.49874.49878.49882.49886.49889.49893.49897.49900

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