Sample Test 3 Problems: (No Key posted before test). Do remember I will add a few new questions/parts to each problem for the Test itself. Problem 1: Inventory with Instant Delivery: Suppose you run a local Leadbetter's. You require 64800 annual pounds of cheese a year. There are 300 working days a year. Each order costs you $50 from Kraft and is delivered all at once. The annual cost of storing one pound of cheese in a refrigerated environment is $10. No shortages are permitted. Suppose I use Q = 500 at first: what is the annual total inventory cost? Now use Q* from now on: a) What is the optimal quantity to order (Q)? b) Annual total inventory cost using Q"? c) What is the average time between orders