your work/steps to receive credit and specify the units D:70 if the units (s. %, davs, etc.) for your answers. (1) An architect firm uses an avera et arm uses an average of 25 boxes of copier paper a day. The firm operates 280 days a year. ys a year. Storage and handling costs for the paper are $20 a year per aper are $20 a vear per box, and it costs approximately $50 to order and receive a shipment of paper. 35 Data line: 0: 7,000 hores du Qud Sund_cod50alder c oluer de declara yem (a) What order size would minimize the sum of annual ordering and carrying costs? OSV Hoc co 7000.50 $14,00d Anca .20 Haso 20,00) 18) ATC ' (b) Determine the total annual cost using your order size from part (a). Tool Tcaucot a ch 2000 (60) 152 (208) 1471.657 & 1620 = $3691.66 (c) The office manager is currently using an order size of 100 boxes. The partners of the firm expect the office to be managed “in a cost-efficient manner.” Would you recommend the office manager use the optimal order size instead of 100 boxes? wes Justify your answer. DATUMU OL (2) The Handy Manufacturing Company manufactures small air conditioner compressors. The estimated demand for the year is 15,000 units. The setup cost for the production process is $600 per run, and the carrying cost is $20.00 per unit per year. The daily production rate is 100 units per day, and demand has been 60 units per day. Assume 250 operating days per year. Data line: (a) Determine the optimal number of units to produce in each batch. (b) Determine the length of production run. (3) Suppose that a perishable item costs $7 and sells for $12. Any item that is not sold by the end of the day and ML = __ can all be sold at half price. (a) MP = __ The following table reveals the discrete demand for this item. (b) Determine the last column of the table: Demand P(Demand this level) P(Demand this level) 1001 0.05 110 0.10 0.20 0.20 140 0.15 150 0.15 160 0.15 (c) Use the marginal analysis to determine how many units should be su Analysis: Conclusion:

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