Note: The numbers are likely slightly different from the above version.... Product X has an ANNUAL demand of 1,735 units. We purchase them from the supplier at price 5. If we don't use them right away, we pay to store them, insure them, and of course we have the invested money to consider. Our finance and accounting teams have informed us that the annual rate of holding cost is 17%. Therefore the annual holding cost per unit is 17% x 5. Obviously we'd rather hold no inventory at all, but we also know that everytime we place an order we pay 56 for shipping and the related administrative costs to process the order -- often called "Shipping & Handling". How much SHOULD we order each time to minimize the annual cost for this product? I.e. Calculate Q*