What is the relationship between inventory cost andtransportation cost? Explain.
Question 13
What is one specific way you would recommend a bowling alleytake advantage of revenue management?
Question 14
Complete the MRP planning schedule below and answer the THREEquestions below. Lead time is 1 week, safety stock is 0, orderpolicy is EOQ of 75.
In each blank put only the number as your answer. (There is nopartial credit for each individual part, so no need to show yourwork.)
| Period: | 1 | 2 | 3 | 4 | 5 |
| Grossrequirements | | | 20 | | 80 |
| Scheduledreceipts | | | | | |
| Projectedavailable balance | 10 | | | | |
| Netrequirements | | | | | |
| Plannedorder receipts | | | | | |
| Plannedorder releases | | | | | |
1. What are the NET REQUIREMENTS in time period *3*? (Put theanswer in the first blank below.)
2. What are the PLANNED ORDER RELEASES in time period *1*? (Putthe answer in the second blank below.)
3. What are the PROJECTED AVAILABLE BALANCE in time period *3*?(Put the answer in the third blank below.)
Question 15
A particular raw material is available at the followingprices:
1) $3.10 for orders of less than 1000
2) $3.08 for orders between 1000 and 1999
3) $3.07 for orders 2000 and larger
Annual demand is 12000 items, order cost is $25, and holdingcost is 20% of the item's cost per year. What is the economic orderquantity? Show work.
