Question: Questioni CLO 4 Maximum Marks 15 Approx Time: 18 Min 8 poi Enviroguard Pest Control uses termite chemicals that cost $soo per gallon. Use is

Questioni CLO 4 Maximum Marks 15 Approx Time: 18

Questioni CLO 4 Maximum Marks 15 Approx Time: 18 Min 8 poi Enviroguard Pest Control uses termite chemicals that cost $soo per gallon. Use is constant at 1/3 gallon per week. Carrying cost rate is considered to be 12 percent per year, and the cost of an order is $125, the company could make this chemical in-house at the rate of 1/8 = 0.125 gallon per day, at a cost of $300 per gallon. The setup cost is $150. Using a 7-day week, the daily demand, d, is 1/21 = 0.0477. (8 Mark) Compare using the EOQ and the EPQ systems. Recommend the course of action? 8 Marks Your

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