Parameter		Value
Annual demand	D	10,000	units/year
Order placement costs	S	$800	per order
Holding cost factor	k	10%	per year per $ of inventory
Unit value	C	$50	per unit
Holding cost	H	$5.0	per unit per year
Order quantity	Q	1789	units per order
Annual holding costs	CSH	$4,472
Annual order placement costs	OC	$4,472
Total costs	G(Q)	$8,944

1. What is the economic order quantity?

2. What are average inventories?

3. How many orders are placed each year?

4. How many days take place between each order (assume 365 days/year)?

5. What are the total costs of the EOQ model for the year?

6. How would you communicate your findings from the model to your supervisor (in complete sentences)? Include items like what the goal of the model is and how the model reached this goal.