Problem $7-9($Algo$)$

Ergonomics Incorporated sells ergonomically designed office chairs. The company has the following information:

Average demand $=25$ units per day

Average lead time $=51$ days

Item unit cost $=$$$71$ for orders of less than $410$ units

Item unit cost $=$$$69$ for orders of $410$ units or more

Ordering cost $=$$$46$

Inventory carrying cost $=20\%$

The business year is $250$ days.

a$.$ How many chairs should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.

b$.$ What will the firm's average inventory be under each alternative?

c$.$ What will be the annual ordering and holding costs for each alternative?

Complete this question by entering your answers in the tabs below.

Required A

Required B

Requirenc

What will be the annual ordering and holding costs for each alternative?

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[$Annual ordering cost$],[$Holding costs$]]$