Question: FourthQuestion: Problem solving (15 Points) A Focal Firm has an annual requirement of 3,600 units of a component a year. With Ordering costs of $15

FourthQuestion: Problem solving (15 Points) A Focal Firm has an annual requirement of 3,600 units of a component a year. With Ordering costs of $15 per order, and carrying costs per unit are 40 percent of the purchase price when purchase price is of $1 each and lead time of 30 days. Determine the Economic order quantity of components to order. Hints: approximate your answers - Q is equal to Q*- calculate EOQ first. Calculate: (EXPLAIN YOUR RESULTS) 1. The EOQ in units. 2. Number of orders per year. 3. Annual Cost of ordering, annual cost of carrying inventory, and total annual costs. 4. Show your answer graphically

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