A) The EOQ that is optimal for S-Mart =

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B) The EOQ that is optimal for the supply chain =

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C)If S-Mart agrees to exercise the EOQ that is optimal for the supply chain in the next year, then S-Marts total annual costs for inventory holding and ordering =

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S-Mart is a local convenience store, carries an inventory of SKU for sales through the next year. S- Mart orders the item from a local manufacturer (the supplier) for resupplies. S-Mart uses the EOQ model to manage its inventory. It costs $60 ordering cost for S-Mart to place an order. The supplier charges S-Mart $50 for each unit of supply. S-Mart's inventory holding cost per unit, per year is 35% of the cost of purchase from the supplier. S-Mart's demand forecast for the next year is 25,000 units. Let's assume demand rate is "horizontal" and constant (not random). For every order received from S-Mart, the supplier executes one production run to fully and instantly meet the order's requirement. The supplier's setup cost for each production run is $180. The supplier delivers the order to S-Mart immediately after production, so the supplier holds no inventory