Solve problems 1 and 2 Problem 1:If the FUS Corporation has the following data about 5 locations:Fixed Cost ($)200,000220,000150,000300,000LocationVariable Cost ($)A10B12C14DE400,0008If the firm would like to produce 100,000 units, which location is recommended graphically andmathematically?Problem2:The soft goods department of a large department store sells 175 units per month of a certain large bathtowel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimatedto be $12.00. The store uses an inventory carrying charge of 27% per year. Determine the optimalorder quantity, order frequency, and the annual cost of inventory management. If, through automationof the purchasing process, the ordering cost can be cut to $4.00, what will be the new economic orderquantity, order frequency, and annual inventory management cost? Explain these results.

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Answered: f the FUS Corporation has the following…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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f the FUS Corporation has the following data about 5 locations: Location Fixed Cost ($) 200,000 220,000 Variable Cost (S) A 10 12 150,000 300,000 400,000 14 D E f the firm would like to produce 100,000 units, which location is recommended graphically and nathematically?