Question: question- If an optimal common cycle joint ordering policy is adopted, what would be the order frequency, the respective lot sizes of the parts and

question- If an optimal common cycle joint ordering policy is adopted, what would be the order frequency, the respective lot sizes of the parts and the estimated annual savings?

A manufacturing firm uses two parts purchased from an external supplier. Part 1 costs $25/unit and is used in the firm's assembly process at a uniform annual rate of 15,000 units, whereas, part 2 costs $5/unit and has a usage rate of 5,000 units/year. The major fixed ordering cost (including transportation charges) from this source is $500/order, applicable to each orders, and handling charges of $50/order for part 1 and $250/order for part 2. The firm's inventory holding cost rate is $0.30/unit/year. a

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