Question: Problem 1 both parts Problem 1) (12 points) A produce distributor uses 4,320 packing crates a month, and each crate is purchased at a cost

Problem 1 both parts

Problem 1) (12 points) A produce distributor uses 4,320 packing crates a month, and each crate is purchased at a cost of $12.5. The manager has assigned an annual carrying cost of 30 percent of the purchase price per crate. Ordering costs are $75. Currently the manager orders once a month. a) What is the Economic Order Quantity (EOQ) for this product? (4 pts) b) How much could the firm save annually in total holding and ordering costs by ordering at the EOQ level? (8 pts) (Show the computations for the total holding and ordering costs in detail)

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