question 2 please!

Yu-Lee, Reginald T CASE CASE 8. 1 LOW NAIL COMPANY After making some wise short-term investments at a race track, Chris Low had some additional cash to in- vesi her The most promising opportunity at the time was in building supplies , so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 keys, and they were sold to real customers in an even dow: Low was uncertain how many nails to order at any time. Initially, only two costs concerned him order processing costs, which were $60 2. Assume all conditions in question 1 hold, except th absorbing all or part of Low's order processing cos. For supplier now offers a quantity discount in the form of orders of 750 or more kegs of nails, the supplier will all the order-processing costs; for orders between 24 749 kegs, the supplier will absorb half. What is Les EOQ? (It might be useful to lay out all costs in takan for this and later questions.) 3. Temporarily, ignore your work on question 2. Assume Lowl warehouse offers to rent Low space on the basis of the army number of kegs Low will have in stock, wher than on the maximum number of kegs Low would need room for whenever a new shipment arrived. The stotis charge per keg remains the same. Does this change the answer to question 1? If so, what is the new answer per order without regard to size, and warehousing costs, which were t per year per keg space. This meant that Low had to rent a constant amount of warehouse space for the year, and it had to be large enough to accommo- date an entire order when it arrived. Low was not wor. tied about maintaining safety stocks, mainly because the ourward flow of goods was so even. Low bought his nails on delivered basis 4. "Take into account the answer to question 1 and the sup plier's new policy outlined in question 2 and the warchowe new policy in question 3. Then determine Low's new EOQ 5. Temporarily, ignore your work on questions 2, 3, and 4 Low's luck at the race track is over; he now must botrov money to finance his inventory of nails. Looking at the situ ation outlined in question 1, assume that the wholesale cost of nails is $40 per keg and that Low must pay interest at the rate of 1.5 percent per month on unsold inventory. What is his new EOQ? 6. Taking into account all the factors listed in questions 1,23 and 5, calculate Low's EOQ for kegs of nails. QUESTIONS 1. Using the EOQ methods outlined in the text, how many kogs of nail should Low order at one time