Problem $1$: $(20$ points$)$

SEC Company has a demand for $1600$ bearings each year. The cost of a bearing is AED $50.$ The ordering cost is AED $36$ per order and holding cost is $25\%$ of the unit cost of the bearing.

What are the economic ordering quantity and the total annual inventory costs $($sum of the annual purchasing $($C D$),$ annual ordering cost, and annual holding costs$)?(10$ points$)$

The supplier of the bearing is offering SEC a discount of $6\%$ in the unit cost if the ordering quantity is $200$ bearing instead of the quantity you found in question $1).$ Should SEC order $200$ bearings each time it places and order and take the $6\%$ discount? $(10$ points$)$