A company manufactures five sizes of screwdrivers. Ordering costs and carrying costs are not known, but it is known that they are the same for each size. At present, each size is produced four times per year. If the demand for each size is as follows, calculate order quantities to minimize inventories and maintain the same total number of runs. Calculate the old and new average inventories. Is there any change in the number of orders per year?

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New Orders Present per Year N = AJQ Annual Orders Present New Lot Size VAp = KVA, Usage per Year Item Lot Size 1 $12,100 $8100 3 $3600 $1600 5 $225 Total Average Inventory 2.