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Question: problem 2 a small appliances manufacturer faces monthly demand of...

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Problem 2. A small appliances manufacturer faces monthly demand of 450 units for a specific refrigerator model, and you manage the shelf orders for this model (which has 8 shelves). Each shelf costs $4, and each order incurs a fixed cost of $125. You calculate weekly holding costs at $0.05 per shelf. (Assume a month has exactly four weeks.) i) Determine the optimal number of shelves for the company to order i) What is the monthly cost associated with the shelf orders? Specify each component of the total 11) Suppose the supplier is only able to send shipments every week, two weeks, or three weeks. What is the best order interval under this restriction? iv) How does the total cost change compared to the cost associated with the optimal order quantity? v) Suppose the refrigerator needs 10 shelves instead of 8, because you include two spares. Does your answer in (iii) change?

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