Question: Problem 1 (a to b: 20 points) A food processor uses approximately 2,000 glass jars a month for its fruit juice product. Because of storage

Problem 1 (a to b: 20 points) A food processor uses approximately 2,000 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 500 jars has been used. Monthly holding cost is $1 per jar, and reordering cost is $250 per order. a) What penalty is the company incurring per year by its present order size? b) What ordering cost would make ordering 500 jars optimal?

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