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Uhura Enterprises provides consulting services for customers. Consultants are brought in for two-hour shifts. A consultant will spend one full hour with a customer. The customers remain for that hour and then leave. Each consultant is paid $25 per hour. Let Xi represent the number of consultants starting their shift at hour i, (i = 1,2,3,4). The firm wishes to minimize salary costs while satisfying demand. Customer demand is as follows.
1:00-2:00 4
2:00-3:00 5
3:00-4:00 10
4:00-5:00 4
5:00-6:00 8
What is the proper objective function?
A) Min 4X1 + 5X2 + 10X3 + 4X4
B) Min 9X1 + 15X2 + 14X3 + 12X4
C) Max 9X1 + 15X2 + 14X3 + 12X4
D) Max 25X1 + 25X2 + 25X3 + 25X4
E) Min 50X1 + 50X2 + 50X3 + 50X4
What would be the EOQ and its associated ordering and holding costs? what is the new EOQ and the total annual inventory cost?
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