Note: Check the doc for questions 1 and 2

1. Solve the game with the following pay-off matrix. (5 marks)

2. Solve the following game (clearly show all the steps). (10 marks)

3. A manufacturer uses Shs. N worth of an item during the year. The manufacturer estimated the ordering cost as Shs. 50 per order and holding costs as 12.5% of average inventory value. The total cost is estimated as Shs. 500. Find the;

i) Value of N. (4 marks)

ii) Optimal order size. (3 marks)

iii) Number of orders per year. (2 marks)

iv) Time period per order. (2 marks)