Problem Solving (12 items x 5 points): Binny Foods manufactures spicy baked potato chips. The baked chips manufacturing process uses three (3) ingredients (items) - potatoes, chili powder, and salt. Binny's purchases these three (3) items from the same supplier. The inventory attributes for these three (3) items are shown in the table below. The supplier offers a discount of 5% on any individual item that has an order size of 750 kg or more. Compute the EOQ for the three (3) items. The ordering cost is P20 per order, and the carrying rate is 15% per year. Item name Annual demand Unit price Potatoes 5,000 kg F4 per kg Chili powder 800 kg P40 per kg Salt 1,200 kg PU.5 per kg A. EOQ and TC with original values (6 items) Potatoes * { N2 DOc _ V2 x5,000 x 20 _ V200,000 333,333 =577.35 kg H 0.15 x 4 0.6 TC= D O Oc J H + DC 5,000 = * 20 +3 577.35 x 0.15 x 4+ 5,000 x 4 577.35 2 (8.66 x20 + 288.68+ 0.6 +20,000 =173.2+173.208+20,000 =20,345.408 Chili powder * \\2DOc _ V2 x800 x20 _ V32, 000 = 5 333.33 =73.05 kg H 0.15 x40 6 TC= D Oc H + DC 800 = 20 + 73.03 x0.15 x 40 + 800 x 40 73.03 = 10.95 x 20)+ 36.515+6]+ 32,000 =219+219.09+32,000 =32,438.09