Question: Problem 1: Columbia Inc. purchases items from a vendor at a cost of $20 per unit. Average monthly demand is 400 units. It costs $50

Problem 1: Columbia Inc. purchases items from a vendor at a cost of $20 per unit. Average monthly demand is 400 units. It costs $50 to place an order and inventory carrying cost per unit is 10% per year. a. What is the optimal order quantity? b. How many orders will be placed per year? c. Determine the total cost of ordering and carrying inventory.

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