Question $1.(5$ points$).$ Springfield Motors orders all$-$season brand tires for its Homer

sedans, where $4$ tires $(1$ set$)$ are used per car. Springfield Motors pays $$190$ for each

tire and estimates that the annual holding cost is $35\%$ of each tire's value. It costs

approximately $$550$ to place an order $($clerical costs involved in getting the tires from

the Krusty Factory$).$ Springfield Motors currently orders $2,000$ sets of tires per order. In

the last $12$ months, sales of the Homer were as follows: $949,949,1066,1635,1573,$

$1635,804,775,804,1579,1293,$ and $1802$ cars. You can use the demand$/$sale

observations in the past $12$ months to estimate the annual demand for this question.

$($a$)$ Determine all relevant costs for its current order quantity $($denoted as COQ$)$ of

$2,000$ sets of tires per order. Include purchasing costs, ordering costs, and

holding costs.

$($b$)$ Now, calculate the Economic Order Quantity $($EOQ$)$ as well as the number of

orders Springfield Motors will place per year. Please round up your answer.

$($c$)$ Based on the EOQ you have calculated in part b$),$ calculate the total annual cost

as the sum of purchasing cost, ordering cost, and holding cost.

$($d$)$ Suppose Springfield Motors moves from using the COQ to the EOQ. Let $$x$

equal the COQ ordering cost plus the holding cost per year. What percent of $$x$

could be saved by moving to the EOQ instead?