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The Sun Up Convenience Store is open 360 days a year. Sum Up sells 25 bottles of Electric Energy Drink each day. It costs $10 for Sun Up to order Electric Energy Drink, regardless of the size of the order. The distributor of Electric Energy Drink sells Electric Energy to Sun Up for $0.50 a bottle. On average, the distributor delivers Electric Energy Drink three days after Sun Upplaces an order. However, the delivery time has a variance of 4 days. If Sun Up were to hold one bottle of Electric Energy Drink in inventory for 1 year, it would cost Sun Up four times the bottle's cost. 1. What order size will minimize Sun Up's costs? Answer units. 2. Using the minimum cost order size, how many times a year will Sun Up order Electric Energy Drink? Answer times a year 3. Using the minimum cost order size, what is the total ordering, holding, and purchasing cost? Answers 4. Sun Up would like to ensure its service level of 90% and above, when should Sun Up order Electric Energy Drink? Answer=when the inventory level is down to bottles. Now suppose that the Electric Energy Drink distributor has just made Sun Up an offer: If Sun Up orders at exactly 1,000 bottles at a time, then the distributor will only charge $0.48 for each bottle. units. 5. What is the total ordering, holding, and purchasing costs? Answer 6. Should Sun Up choose to order 1,000 bottles at a time based on your analysis? Note: answer Yes/No only. Answer= The Sun Up Convenience Store is open 360 days a year. Sum Up sells 25 bottles of Electric Energy Drink each day. It costs $10 for Sun Up to order Electric Energy Drink, regardless of the size of the order. The distributor of Electric Energy Drink sells Electric Energy to Sun Up for $0.50 a bottle. On average, the distributor delivers Electric Energy Drink three days after Sun Upplaces an order. However, the delivery time has a variance of 4 days. If Sun Up were to hold one bottle of Electric Energy Drink in inventory for 1 year, it would cost Sun Up four times the bottle's cost. 1. What order size will minimize Sun Up's costs? Answer units. 2. Using the minimum cost order size, how many times a year will Sun Up order Electric Energy Drink? Answer times a year 3. Using the minimum cost order size, what is the total ordering, holding, and purchasing cost? Answers 4. Sun Up would like to ensure its service level of 90% and above, when should Sun Up order Electric Energy Drink? Answer=when the inventory level is down to bottles. Now suppose that the Electric Energy Drink distributor has just made Sun Up an offer: If Sun Up orders at exactly 1,000 bottles at a time, then the distributor will only charge $0.48 for each bottle. units. 5. What is the total ordering, holding, and purchasing costs? Answer 6. Should Sun Up choose to order 1,000 bottles at a time based on your analysis? Note: answer Yes/No only. Answer=

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