a) Determine: (I) the optimal number of VCR’s Wiley should order (integer value) (ii) the cycle time (in weeks); and, (iii) his yearly net profit.
b) Wiley is considering allowing backorders. Wiley intends to offer customers a discount of $20 per week for each week the customer must wait for a VCR. Wiley estimates that this policy will result in a drop in demand to 36 VCR’s per week. Order and holding costs will remain the same. Should Wiley adopt this policy? Why or why not?
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