Question: Application Questions ( 6 0 credits, please provide necessary formulas and solving steps ) 2 1 . A firm's demand for a product is 6

Application Questions (60 credits, please provide necessary formulas and solving steps)
21. A firm's demand for a product is 60 units per month. its supplier charges an ordering cost or
$40 per order and $35 per unit with a 5% discount for orders of 150 units or more. Orders
must be placed in integer multiples of 50 units. The firm incurs a 57 annual holding cost per
unit. What is the optimal order quantity that minimizes the total annual purchasing, ordering.
and holding cost?

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