Question: AT&T is trying to decide between two alternate Order Plans for its inventory. Annual Demand is constant at 12000 for both plans. In Plan 1,

AT&T is trying to decide between two alternate Order Plans for its inventory. Annual Demand is constant at 12000 for both plans. In Plan 1, the order costs would amount to R20 per order. Inventory holding costs (carrying cost) would be R80 per unit. Under Plan 2 order costs would be R30 per order. And holding costs would be 150% of the unit Cost. The unit cost is R280. Calculate out EOQ and Total Inventory Cost under both plans.Recommend which Plan would result in the lowest total inventory cost?

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