Question 1 - Lead Time Calculation (33 points) In a project, 50,000kg of steel cold-formed sections need to be installed. The cost of 1kg of the selected steel cold-formed section is 30 cents. Transportation can be considered at an additional 5 cents per kg. Administrative (order) costs are estimated to be USD 500. A nearby storage area is available and can be rented for a cost of 6 cents. /m3/ day (knowing that the steel cold-formed sections will take 750m3 of storage). For every day of project delay, the contractor is charged a fine of USD 1,000. The activity of installing the sections is expected to take 6 days and has an early start ES and late start LS of 120 and 123 respectively. The probabilities of delivery for the steel cold-formed sections are shown in Table Q1 below. It is required to calculate: Table-Q1 A. The expected delivery time for the required material. B. The total costs in case the material arrives at the beginning of day 118 C. The total costs in case the material arrives at the beginning of day 122 . D. The total costs in case the material arrives at the beginning of day 126 . E. If the material is ordered on day 115 , what is the probability of paying holding cost? F. If the material is ordered on day 120 , what is the probability of paying unavailability cost? G. What is the most suitable day to order the material? (show your steps) Question 1 - Lead Time Calculation (33 points) In a project, 50,000kg of steel cold-formed sections need to be installed. The cost of 1kg of the selected steel cold-formed section is 30 cents. Transportation can be considered at an additional 5 cents per kg. Administrative (order) costs are estimated to be USD 500. A nearby storage area is available and can be rented for a cost of 6 cents. /m3/ day (knowing that the steel cold-formed sections will take 750m3 of storage). For every day of project delay, the contractor is charged a fine of USD 1,000. The activity of installing the sections is expected to take 6 days and has an early start ES and late start LS of 120 and 123 respectively. The probabilities of delivery for the steel cold-formed sections are shown in Table Q1 below. It is required to calculate: Table-Q1 A. The expected delivery time for the required material. B. The total costs in case the material arrives at the beginning of day 118 C. The total costs in case the material arrives at the beginning of day 122 . D. The total costs in case the material arrives at the beginning of day 126 . E. If the material is ordered on day 115 , what is the probability of paying holding cost? F. If the material is ordered on day 120 , what is the probability of paying unavailability cost? G. What is the most suitable day to order the material? (show your steps)