Question $1$:

A large bakery buys flour in $25kg$ bags. The bakery uses an average of $4,860$ bags a year.

Preparing an order and receiving the shipment of flour bags involves a cost of $$10$ per order.

Annual holding cost is $$5$ per flour bag.

$($a$)$ Determine the economic order quantity.

$($b$)$ What is the average number of bags on hand $($i$.$e$.,$ in inventory$)?$

$($c$)$ How many orders per year will there be$?$

$($d$)$ Calculate the total annual cost of ordering and holding flour.

$($e$)$ If ordering cost were to increase by $50$ percent per order, by what percentage would the

EOQ change?