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b) What is the EOQ in each case?c) Now consider case T. The manufacturer is offered two options: One is reduce the fixed cost of each order placed to $1521; the other is to improve forecasting techniques to reduce the standard deviation of monthly demand to 4. Consider the total monthly setup and holding cost (including the cost of safety stock), which option should the manufacturer choose?
∗!""" +! !! !"#!" ! +! !! 2. (25 pts) Cheap Software Store (CSS) sells language software used in self-study of foreign languages. CSS sells tutorials in French, German and Spanish. The following table shows the monthly demand data for each version of the software:
V ersion Demand Distribution (Monthly) French N(μ = 144, σ=40) German