anny Steel, Inc., fabricates various products from two basic inputs, bar stock and sheet stock.

Bar stock is used at a steady rate of $1,000$ units per year and costs $$200$ per bar. Sheet stock is

used at a rate of $500$ units per year and costs $$150$ per sheet. The company uses a $20$ percent

annual holding cost rate, and the fixed cost to place an order is $$50,$ of which $$10$ is the cost of

placing the purchase order and $$40$ is the fixed cost of a truck delivery. The variable $($i$.$e$.,$ per

unit charge$)$ trucking cost is included in the unit price. The plant runs $365$ days per year.

Use the EOQ formula with the full fixed order cost of $$50$ to compute:

$($a$)$ The optimal order quantities

$($b$)$ The order intervals

$($c$)$ The annual cost for bar stock and sheet stock. What fraction of the total annual $($holding

$+$ order$)$ cost for stocks consists of fixed trucking cost?