line.FIN - Compatibility Mode - Word L e Search Les Mailings Review View Help E - ALT AaBbCd AaBbc AaBbcc AaBbCd AaBbCcD Emphasis Heading 1 1 Normal Strong Subtitle Find Replac Select Editing Paragraph Styles 5 5. (30 points) The annual demand of an item is 9600 units. The ordering cost per order is $65. The holding cost per item per month is 0.2% of the unit cost of the item. The item costs $25 per unit. The management has been ordering 1600 units per order. How much is the organization loosing per year by not using EOQ as the ordering quantity? (a) Compute the total cost for ordering a quantity equal to EOQ Answer: (9 points) EOQ = _ Answer: (9 points) Total Cost = (b)How much will the organization lose per year by using an ordering quantity of 1600 instead of EOQ? Answer: (9 points) Total cost = Answer: (3 points) Loss =