Question: QUESTION 21 First Corp. is ordering 350 units at a time to satisfy its demand. For that particular inventory policy, the total annual holding cost

QUESTION 21 First Corp. is ordering 350 units at

QUESTION 21 First Corp. is ordering 350 units at a time to satisfy its demand. For that particular inventory policy, the total annual holding cost is equal to $2,500 and the total annual ordering cost is $4,000. What does the purchasing manager at First Corp should do? Do nothing, the company is ordering the optimal quantity There is not enough information to make a decision Order quantity larger than 350 units Order quantity smaller than 350 units QUESTION 22 A bakery buys sugar in bags. Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. Carrying costs are $5 per bag per year. Ordering costs are estimated at $20 per order. It takes 2 days for each order of sugar to be filled. What is the total Annual Holding Cost for the EOQ quantity? $25 $50 $100 $500 $1000

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