Problem $11-21($Algo$)$

Item $x$ is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about

$1,800$ of item $x,$ which costs $$25$ each. Storage costs, which include insurance and cost of capital, amount to $$14$ per unit of average

inventory. Every time an order is placed for more of item $x,$ it costs $$18.$

a$.$ Whenever item $x$ is ordered, what should the order size be$?$

Note: Round your answer to the nearest whole number.

Order size

b$.$ What is the annual cost for ordering item $x?$

Note: Round your order quantity to the nearest whole number and your final answer to $2$ decimal places.

Ordering cost

c$.$ What is the annual cost for storing item $x?$

Note: Round your order quantity to the nearest whole number and your final answer to $2$ decimal places.

Holding cost