Question $3$: $(6$ marks$)$

The local cooperative supply company stocks a vitamin$/$mineral premix for a specialized poultry feed. This premix has a demand of $1700$ units per year and a cost of $$35$ per unit. The carrying charge is $55$ percent per unit and the ordering cost is $$18$ per order. Assume $250$ days of operation per year.

a$.$ What is the economic order quantity $($EOQ$)$ for this item? $(1\mathrm{.}5$ marks$)$

b$.$ How many orders will be placed per year using the EOQ? $(1\mathrm{.}5$ marks$).$

c$.$ Compute the annual ordering cost, annual holding cost and combined annual ordering and holding cost. $(2$ marks$).$

d$.$ How often will the dealer reorder $($ROP$)$ this premix if the lead time for order is $5$ days? $(1$ mark$).$