1. The annual demand for an item. is 40,000 units. Holding cost is 2.75% per month, and the ordering cost is $120. The supplier has offered a price schedule of $11.00 for 0 to 999 units, $10.50 for 1000 to 4999, and $9.50 over 5000. Calculate the best order quantity.
2. A gas station sells pizzas. Weekly demand follows an exponential distribution with a mean of 650, The pizzas cost the station $3.50 each and sell for $8.75 each, At the end of each week unsold pizzas are sold for $2.00 each. How many pizzas should the station order each week?