Quarter inch stainless steel bolts one and half inches long are consumed in factory at a fairly steady rate of 60 per week. The bolts cost the plant...

Quarter inch stainless steel bolts one and half inches long are consumed in factory at a fairly steady rate of 60 per week. The bolts cost the plant 2 cents each .it costs the plant $12 to initiate an order and holding cost are based on an annual interest rate of 25percenta) determine the optimal number of bolts for the plant to purchase and the time between the placement ordersb) what Is the yearly holding and setup costc) suppose instead of smallbolt we are talking about bulky item like packing material what problem might there be with our analysis?Reconsider the above problem suppose although we have estimated the demand as 60per week it turns out that it is actually 120 per week (ie we have a 100% forecasting error)a) if we use the lot size calculated in the above problem what will the setup plus holding cost be under the true demandb) what would the cost be if we used the optimum lot sizec) what percentage increase in cost was caused by100 percent demand forecasting error?what dose this tell you about the sensitivity EOQ model to errors in the data?Consider the above bolt example yet again assuming the demand 60 per week is correct .suppose the minimum reorder interval is 1 month and all order cycle is placed on a power of 2 multiple of months (ie 1 month, 2 months 4 months and 8 months etc) in order to permit truck sharing with the orders of the partsa) what is the least cost reorder interval under this restrictionb) how much does this add to the total cost