Question: Answer questions 1, 2, and 3 based on the following: Annual demand is 10,000 units, the ordering cost is $4 per order, the holding cost

Answer questions 1, 2, and 3 based on the following:

Annual demand is 10,000 units, the ordering cost is $4 per order, the holding cost is $2 per unit per year, Lead time is 3 days. Assume 250 working days in a year.

1.Which of the following is the optimal order quantity using the fixed-order-quantity model?

2.Which of the following is the Annual Ordering cost for this item?

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