Question #2. Consider the information given in the file in class exercise 9_question 2.xlsx. An orange juice manufacturer estimates that they will need 45 000 kgs of oranges annually. It costs 250 TL to place an order for oranges and it costs 10 TL to hold one kg of orange in inventory per year.

Part A. Determine the optimal order quantity, the number of orders to place in a year, the optimal time between orders (in days) and the total annual cost for the firm.

Part B. Determine how the optimal order quantity and the total set up cost for the firm would change if we vary the holding cost between 5 TL and 50 TL in increments of 5 (i.e., 5 TL, 10 TL, 15 TL... etc.) using the Data Table tool of Excel.

Part C. Plot the annual holding costs, annual set up costs and annual total costs using a line-graph.

Part A Part B Part C Annual Demand Fixed Cost per Order Holding Cost per unit per year 45000 250 10 Optimal Order Quantity Number of Orders Optimal Time between Orders Total Setup Cost Total Holding Cost Total Annual Cost Part A Part C Annual Demand Fixed Cost per Order Holding Cost per unit per year 45000 250 10 Optimal Order Quantity Number of Orders Optimal Time between Orders Total Setup Cost Total Holding Cost Total Annual Cost Part A Part B Part C Part A Part B Part C Annual Demand Fixed Cost per Order Holding Cost per unit per year Order Quantity Annual Setup Cost Annual Holding Cost O 200 300 400 500 600 700 800 1100 1200 1300 1400 1500 1000 1700 1800 1900 2000 2100 2200 2300 2500 2000 2700 200 3000 3100 3300 3100 3400 3500 3600 3700 3800 3900 4000 4100 4300 4400 4500