Question: Assume that there are two items for which we wish to minimize the total cost: the item discussed in question 1 , and a second

Assume that there are two items for which we wish to minimize the total cost: the item discussed in question 1, and a second item with unit value of $50/unit and annual demand of 2000 units. Assume that the holding charges are the same for both items ($0.25/$/year). There is a major fixed ordering cost of $100 regardless of the items purchased, and a minor fixed ordering cost of $35 for the first item and $50 for the second (again, these are quantity independent). a) What is the optimal number of deliveries per year assuming joint ordering? b) What is the optimal order size of item 1? c) What is the optimal order size of item 2?

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