Chapter 12, Problem 58P

a)

Summary Introduction

To explain: The reason why $Q_{79}$ will be larger than $Q_{80}$.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To explain: The reason why the optimal order quantity must be $Q_{79}$, $Q_{80}$, or $Q_{100}$.

c)

Summary Introduction

To explain: The reason why the optimal order quantity must be $Q_{79}$ when $Q_{80}>100$.

d)

Summary Introduction

To explain: The reason why the optimal order quantity must be $Q_{80}$ or 100 when $Q_{80}<100$ or $Q_{79}<100$.

e)

Summary Introduction

To explain: The reason why the optimal order quantity must be $Q_{79}$ when $Q_{80}<100$ or $Q_{79}>100$.