Think of this first practice problem as a warm up. We have found over the years that many students make mistakes on the simple concepts (converting to common units, translating times from months to years, etc.). So, let's make sure we are all comfortable with these basic ideas before moving on to the more complicated concepts. So, for this problem it is all about the basics, with no trouble ( hope). Part 1 O points possible ungraded) An item has a demand of 240 units per month, with a standard deviation of 35 units per week. Assuming there are 12 months in a year, what is the demand per year? Assuming there are 4 weeks in a month, what is the monthly standard deviation of the demand? Part 3 points possible (ungraded) You have been asked to calculate the economic order quantity Q* for a product that has an expected demand of 240 units per month. The cost per unit is $50, and the holding charge is 12% of the item's cost per year. Placing an order has a cost of $100. Assuming there are 12 months in a year, what is the monthly holding charge? Assume the charge is simple (not compound). Give your answer in decimal form, e.g. for 5%, say 0.05. What is the economic order quantity for this product? Round up to the nearest integer. Part 4 O points possible (ungraded) Assuming a monthly demand of 240 units and an order quantity of 310 units, what is the value of T* (the optimal time between orders)? Give the value of T* in months (use one decimal): Assuming 4 weeks per month, give the value of Tin weeks (use one decimal)