QUESTION $3$

$3\mathrm{.}1$ A company has had a steady demand of $42000$ units per year. The company is able to produce $240$ units per day, and is in operation $350$ days a year. The cost of setting up for production is R$260$ and the annual holding cost per unit per year is R$140.$ Calculate the total cost of inventory $($setup $+$ holding cost$).$

$3\mathrm{.}2$ Mother boards are shipped from Cape Town to a computer manufacturer in Johannesburg three times a year. The reorder point, without safety stock is $100$ units. The carrying cost is R$250$ per unit per year, and the cost of the stockout is R$520$ per unit per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? Show full calculations

$(12)$

$[$TURN OVER$]$

$\mathrm{.}6.$

EPT$2602$

$\backslash$table$[[\backslash$table$[[$Demand during lead$],[$time$]],$Probability$],[0,0\mathrm{.}10],[50,0\mathrm{.}20],[100,0\mathrm{.}30],[150,0\mathrm{.}15],[200,0\mathrm{.}10],[250,0\mathrm{.}15]]$

$[17]$