The yacht company builds personal yachts. Its annual deductible is 10 yachts. This company can build at a rate of one yacht per month. Carrying cost is very expensive and is about $10,000 per year. The setup cost for a production run of yachts is $2,000. Find the order quantity and Imax.

Lugini Watch's annual demand is 100. It can produce at a rate of 10 watches oer month with a $100 setup cost for the production run. Find the order quantity and Imax assuming carrying cost is $100 per unit.

Apple Cakes reviews inventory every two weeks with lead time of seven days, demand rate 40 units per day and standard deviation five units per day. If the company tolerates no more than one stock-out per year, develop the ordering policy for a fixed-time period inventory system assuming 52 weeks per year? Show calculations.