QUESTION $1$

The EOQ model is used to manage the inventory of a product. The annual ordering cost is $$3$ million.

a$.$ The annual holding cost is $,$ million.

If the order quantity is less than the EOQ:

a$.$ The annual ordering cost is

$$3$ million. $($note: choose a sign in the brackets to fill in the blank$)$

b$.$ The annual holding cost is

$$3$ million.

c$.$ The AHO is

$

million.

QUESTION $2$

replenishment lead time is $3$ weeks.

a$.$ An order is placed every

$|$ week$($s$).$

b$.$ ROP$=$

$$nits$.$

c

$|$ units will be placed.

d$.$ Right after this order is placed, IP:

units.

e$.$ The next order will be placed