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A pain reliever and fever reducer is produced by a medicine producer in the United States of America. A supplier in China supplies this corporation with two medication ingredients: paracetamol powder and maize starch. The table below shows the demand and costs for each ingredient.

The Economic Order Quantity (EOQ) model's assumptions are met. Note that the fixed cost per order for each ingredient includes both common and product-specific ordering expenses, which are used into the EOQ calculation. Display the calculation's units and steps.

Question:

If paracetamol powder and maize starch are ordered and delivered JOINTLY, determine optimal number of orders per year, optimal order quantity for paracetamol powder the ordering cost per order, optimal order quantity for maize starch, and the total annual cost (i.e., the sum of annual purchase, ordering and holding costs).

Annual demand Unit price Common ordering cost Product-specific ordering cost Holding cost per kg per year Paracetamol powder Maize starch 10,000 kg 5,000 kg $800/kg $400/kg $360/order $140/order $125/order 5% of the unit price 5% of the unit price