Question: Problem No. 16 points) A retailer and a warehouse have decided to cooperate in establishing order sizes for one of their items in order to

Problem No. 16 points) A retailer and a warehouse

Problem No. 16 points) A retailer and a warehouse have decided to cooperate in establishing order sizes for one of their items in order to reduce their combined cost with inventory. The ordering cost for the retailer is $10, while that for the warehouse it is $15. The value of the item at the warehouse level is $50, and that retailer adds $30. The inventory carrying rate for each is 20%. The annual demand for the item is 3,500. Retailer's order quantity Warehouse's order quantity

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