1) If the annual demand is 11000 units the set up cost is $700 and the Holding

1) If the annual demand is 11000 units the set up cost is $700 and the Holding cost is $9 / unit / year what will be the best order size given the
follwoing quantity discounts?

2) Pioneer Electronics is thinking about making their own video cards which have an demand of 21284 units. The cards can be produced at a rate of 107 units
per day. Pioneer operates 29 days in a year. Assume that demand is uniform throughout the year. Setup cost is $1006 for a run and holding cost is $14 per
card / year.

What is the daily usage?

3) The lead time demand has a mean of 85 units with a standard deviation of 12. It follows normal distribution. If you want a service level
of 95% what should be the Reorder Point (ROP)?