Please answer all 1.1 - 1.3

Question 1: Company A and Company B are two companies. Below you can see their inventory information The total annual demand for both company A and B is 1,500 units per year. The order cost of Company A is $200, and the holding cost is $10 per unit per year. The order cost of Company B is $100, and the holding cost is $30 per unit per year. 1.1. Now assume Company A is supplying Company B as a two-stage serial system and the demand for this system is 1,500 units per year. Find the optimal order quantity for each company assuming these companies are working together under centralized control. What is the total annual cost for each company? (15 points) 1.2. Now let's shift to a two-stage serial system under decentralized control. Find the optimal order quantity for each company assuming these companies are working together under decentralized control. What is the total annual cost for each company? (15 points) 1.3. Compare these two order quantities that you have found so far and compare them. Which inventory system is the best and why? (10 points)