help me with parts a,,b,c. Previous experts provided the wrong answer for me and please draw the graph so i can get a clear image. 1. Suppose that the rate of customer demand for candy bars at Grocery City is constant at a rateof 400 candy bars per week. Each time that Grocery City places an order for more candy bars itmust pay processing fees of $15 regardless of the size of the order. Holding costs for candy bars are$0.1 per candy bar per week. Finally, leadtime for the delivery of candy bars is 0 days. Assumethat there are 52 weeks in a year.a. Suppose that Grocery City places an order for 600 candy bars each time that its inventoryof candy bars reaches 50. Draw a graph showing the number of candy bars that Grocery City hason-hand in inventory at each point in time up until the time when it places its fourth order. Labelthe points in time at which Grocery City places a new order. What will be Grocery City's averageinventory holding costs per unit time? What will be Grocery City's average fixed ordering costsper unit time? Assume that Grocery City starts out with 650 candy bars on day 0.b. Assuming that Grocery City would like to minimize the sum of its average purchasing, fixedordering and holding costs per unit time, what is the optimal number of candy bars for GroceryCity to purchase each time that it places an order and what should be its reorder point?c. Suppose now that it takes 0.5 weeks for each order of candy bars to be delivered. When thequantity of candy bars reaches what level should Grocery City place an order for more candy bars?Assume that Grocery City orders according to the optimal order quantity from part b above.

Demand rate (D) = 400 candy bars per weekOrdering cost (S) = $15 per orderHolding cost (H) = $0.1…

... Suppose that the rate of customer demand for candy bars at Grocery City is constant at a rate of 400 candy bars per week. Each time that Grocery City places an order for more candy bars it nust pay processing fees of $15 regardless of the size of the order. Holding costs for candy bars are 50.1 per candy bar per week. Finally, leadtime for the delivery of candy bars is 0 days. Assume hat there are 52 weeks in a year. 1

... Suppose that the rate of customer demand for candy bars at Grocery City is constant at a rate of 400 candy bars per week. Each time that Grocery City places an order for more candy bars it nust pay processing fees of $15 regardless of the size of the order. Holding costs for candy bars are 50.1 per candy bar per week. Finally, leadtime for the delivery of candy bars is 0 days. Assume hat there are 52 weeks in a year. 1

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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