1. The manager of Electronic Instruments Retail Inc. just received the forecast for the next year. The company expects to sell around 55000 keyboards, the annual carrying cost is $7 per unit and ordering cost is $300. How many keyboards should she order to decrease inventory and order costs? ?
2. Schrute Farms sells a blend of beet and carrot juices. The demand for the blend is approximately normal with a mean of 300 liters a week and a standard deviation of 15 liters a week. Shortage cost=$1.5/liter and Overage cost=$0.5/liter. Find the optimal stocking level for the beet-carrot blend.