Consider a three sequentially stepped process named as process a, process b and process c. input comes into process a. output form a goes into process b. output from b goes into process c. output of c is the final output. suppose that it takes 2 minutes per unit in process a, 3 minutes per unit in process b and 1 minute per unit in process c. suppose further that process a receives input at the rate of 30 per hour. where would you place a buffer?

Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?