You are an inventory manager with Alpha Enterprises and are responsible for sourcing part #$329$ from Beta Inc. Please see the demand and cost information provided in the next tab and use this information to answer the following five questions:

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$1.$ What is the economic order quantity for SKU #$329?$

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$2.$ How many orders will be placed over the course of a year?

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$3.$ How much time $($in days$)$ elapses between order placements?

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$4.$ Due to a change in production processes, Beta announces that orders can be shipped in multiples of $1,000$ units only, thus rendering the EOQ computed in Q$\mathrm{.}1$ infeasible.

a$.$ Should the new $($cost$-$minimizing$)$ order quantity be $1,000$ or $2,000$ units?

b$.$ What is the additional cost caused by the deviation from the EOQ?

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$5.$ Alpha has negotiated with Beta to gain more flexibility in terms of order quantities, and Beta has agreed to the following terms: In return for a modest $$1$ increase in the unit cost $($C$),$ Alpha can, once again, place orders of any size.

a$.$ How do total relevant costs change in this scenario relative to the preferred scenario identified in Q$\mathrm{.}4$a$?$

b$.$ Please provide a brief written explanation for why this is or is not a good deal.

Parameters D $26,000$

C $$258\mathrm{.}00$

k $28\%$

H $$72\mathrm{.}24$

S $$3,015$