Global AirSpan Freightways can earn $4 revenue per ton/mile on all US domestic routes, including the LAX-JFK route that requires a new airplane. (Thus, Global AirSpan Freightways collects 4*2139 = $8,566 for each ton flown between LAX and JFK.) Competitive pressures, however, keep Global AirSpan Freightways prices lower on all international routes, including the NRT-SIN route discussed here, where it earns only $2 in revenue for every ton/mile. Exactly how many ton/miles would an airplane need to carry on an international route each month, such that Global AirSpan Freightways would be completely indifferent to the issue of whether that airplane were a Boeing 747-400 or a Boeing 767-300 ?

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?