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1. A large bakery buys flour in 20-pound bags. The bakery uses an average of 1450 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $25 per order. Annual carrying costs are $ 58 per bag. a) Determine the economic order quantity? b) what is the average number of bags on-hand? c) How many orders per year will there be? d) Compute the total cost of ordering and carrying flour? e) if holding costs were to increase by $5 per year, how much would the minimum total annual cost? 2. The maintenance department of a large hospital uses about 820 cases of liquid cleanser annually. Ordering costs are $7, carrying costs are $12 per case a year, and the new price schedule is given in table below. Determine the optimal order quantity and the total cost. Range 1 to 49 50 to 79 80 to 99 100 or more Price $30 $28 $26 $24