Question: Please consider the demand and cost information shown below. Note that the order quantity shown (2,000 units per order) is not optimal. - What is

Please consider the demand and cost information shown below. Note that the order quantity shown (2,000 units per order) is not optimal. - What is the total logistics cost in this current scenario? - What would be the economic order quantity? - By how much (in \% terms) could total logistics costs be reduced if the firm used the EOQ rather than an order quantity of 2,000 units? - Finally, the firm is considering one of two options: Option A would allow the firm to reduce order placement costs to $850 per order (all else equal). Option B, in turn, would allow the firm to reduce physical warehousing charges, thus bringing inventory holding costs down to $41 per unit per year (all else equal). Given the choice between Option A and Option B, which one would you recommend? By how much (in \% terms) could total logistics costs be reduced (relative to the initial optimal scenario) if the preferred option was implemented

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