Question: please show the step by step to the answer 17) A retailer offers 5 different products for its customers. The fixed cost per order is

please show the step by step to the answer

17) A retailer offers 5 different products for its customers. The fixed cost per order is $2,225 and the holding cost is 22% The annual demand, product-specific ordering cost and cost per unit is provided in the table below.

Product A Product B Product C Product D Product E
Annual demand 4,000 32,000 1,300 27,000 7,500
Product-specific ordering cost $1,250 $1,000 $1,750 $1,500 $2,000
Cost $750 $400 $250 $800 $300

The retailer will use tailored aggregation to order his products and will order such that he will minimize the annual inventory holding and ordering costs.

1. In what order quantity and how many times per year should each product be ordered? (report your order quantities as integers and your annual order frequency to 2 decimal places)

Product A

Order quantity:

Annual order frequency:

Product B

Order quantity:

Annual order frequency:

Product C

Order quantity:

Annual order frequency:

Product D

Order quantity:

Annual order frequency:

Product E

Order quantity:

Annual order frequency:

What is the total annual minimized cost of inventory holding and ordering costs? (report your answer to 2 decmal places)

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