1. A company produces fertilizer in 50 pounds bags. Weekly demand is 100,000 pounds per week....

  

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1. A company produces fertilizer in 50 pounds bags. Weekly demand is 100,000 pounds per week. They operate 50 weeks per year. They can produce 250,000 pounds per week. The setup cost is $200 and annual holding cost is $0.55 per bag. Currently, it produces fertilizer in batches of 1,000,000 pounds. A) Calculate Economic Production Quantity (EPQ). B) Calculate maximum inventory level (Imax). C) Calculate total annual cost (ordering cost + holding cost, not including material cost). 1. A company produces fertilizer in 50 pounds bags. Weekly demand is 100,000 pounds per week. They operate 50 weeks per year. They can produce 250,000 pounds per week. The setup cost is $200 and annual holding cost is $0.55 per bag. Currently, it produces fertilizer in batches of 1,000,000 pounds. A) Calculate Economic Production Quantity (EPQ). B) Calculate maximum inventory level (Imax). C) Calculate total annual cost (ordering cost + holding cost, not including material cost).