Question 5: The demand for a product is 5000 items per year and carrying costs are 25% per year. You are considering purchase from the following three suppliers. Ordering Cost Order Quantity Unit cost Supplier A $200 per order No restriction $2 per item Supplier B $500 per order At least 3500 $1.85 per item Supplier C $1500 per order At least 6000 $1.60 per item Show the total cost of using each supplier and the select the best one. Supplier ID _____________ EOQ _________________ Quantity to be ordered _______________ Average Inventory __________ Number of orders/year ______________ Total Inventory Cost ____________ Grand Total cost ___________________ Supplier ID _____________ EOQ _________________ Quantity to be ordered _______________ Average Inventory __________ Number of orders/year ______________ Total Inventory Cost ____________ Grand Total cost ___________________ Supplier ID _____________ EOQ _________________ Quantity to be ordered _______________ Average Inventory __________ Number of orders/year ______________ Total Inventory Cost ____________ Grand Total cost ___________________ Conclusion: Order _________ units per order from Supplier _____ to minimize cost. The lowest annual cost including item cost will be ________________