Mgmt 3332 Online Class Spring 2016 Case 2 Texas Appliances Inc Texas Applia

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I need help only on question 1: i am confused as to what formula to use either option 1 or option 2 

Key: 

d: Demand usually units per year 

s: Ordering cost per order 

q:order quantity in units

h: Annual carrying cost per unit per year 

option 1:  TC= Carrying cost+ ordering Cost 

                         (Q/2)h+ (d/Q)S

Option 2: TC: Carrying cost +order cost+ purchase cost

                  (Q/2)h+ (d/Q)S+ PD

also for the second company do we use option 2 and for thefirst company we use option 1?

also on the third company how do i do it with the 200 safety stock

if you can answer question 1 please because i did it i just wanted to see if it was done correctly, THANKS!!!! would help a lot!!! 

 
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