The demand for an item each costing $$1,$ is $10,000$ units per year. The ordering cost is $$10.$

Inventory carrying charge is $20\%$ based on the average inventory per year. Then compute the

following:

$($a$)$ If the current order quantity Q $=1000,$ determine the ordering, holding, and total inventory

costs $.$

$($b$)$ Determine the optimal order quantity Q$$

$($Use EOQ model$).$

$($c$)$ How many orders will be placed per year? $($Under EOQ$)$

$($d$)$ If the new ordering amount is Q$$

$,$ determine the ordering, holding, and total inventory

costs. In this case how much the company will save $($compared to the case of ordering $1000$

units$)?$