1. At a local money exchange store, the short cost (not enough) and long cost (too much) depend on how much they stock and what the future demand are. Below table contains cost values for different stocking amount (rows) and different future cash demand amount (columns). The store wants to minimize by choosing the optimum stocking amount. Calculate expected cost for each stocking amount (5 of them). How much cash should the store stock?

An oil change shop is trying to determine how many cases of engine oil they should order from its distributor. They use 60,000 cases per year. Annual carrying cost is 20% of the item cost. Ordering cost is $8.50 per order. The distributor offers the following quantity discount schedule:
quantity          cost ($)
1- 999                5.00
1000 1999           4.50
2000+                 4.25

2. What is the EOQ for each item cost?

3. What is total cost (holding cost + ordering cost + material cost) if they buy at $4.50 per case at the minimum total cost point on $4.50 curve (EOQ point for $4.50)?

4. What is total cost (holding cost + ordering cost + material cost) if they buy at $4.25 per case at the minimum allowable order quantity (Q = 2000)?

5. Considering above, what is the final condition (price and order quantity) you recommend in order to obtain at the lowest total cost?

A student wants to schedule a project using PERT. She has determined the following activities, precedence relationships and time estimates in days for the project.

6. Name all potential paths and their path durations.

7. Calculate ES, EF, LS, LF, and slack for all activities.

8. How many days can activity "c" be delayed without extending project duration?