Problem $1$:

HML Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into

refrigerators and other home appliances. Currently, HML orders a particular component in batches of $300$

units from one of its suppliers. The annual demand for this component is $2,000.$

a$)$ If the carrying cost is estimated at $$1$ per unit per year, what would the ordering cost have to be

to make the order quantity optimal?

b$)$ If the ordering cost is estimated to be $$50$ per order, what would the carrying cost have to be to

make the order quantity optimal?