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Below is the required assignment: <br/> <br/>Assignment 4 <br/>Problem 1 (15 marks) <br/>The annual demand of training shoes is 12,500 units. The cost to place an order is Dhs 150 and the holding cost is 20% per year of the cost of the pair of shoes. The purchase price schedule is as follows: <br/> Less than 300 pairs Dhs 100 <br/> 300 to 499 pairs Dhs 95 <br/> 500 to 999 Dhs 90 <br/> 1000 and more Dhs 85 <br/>Compute the economic order quantity. <br/>Problem 2 (15 marks) <br/>The maintenance center of Baghdad Taxi Airport receives cars at an average rate of 3 cars per hour for different operations (repair, or oil change). There are 3 mechanics that perform the maintenance at a mean time of 30 minutes. Assume that the arrival and service times are exponentially distributed. Compute: <br/>a) The probability that the mechanics are free. <br/>b) The probability that there are three cars in the maintenance center. <br/>c) The average number of cars in the queue. <br/>d) The average number of cars in the maintenance center. <br/>e) The average time that a coming car will spend in the queue. <br/>f) The average time that a coming car expects to stay in the maintenance center before leaving it. <br/>
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