Your company has been using the economic ordering quantity to determine the lot size for one of its

products it purchases from a supplier located in Sharjah. This product has an inventory holding cost of

AED $2$ per unit per year and an ordering cost AED $50$ per order. The product is sold at an annual rate of

$200$ units. Your company has recently implemented an ERP system, which helped to reduce the ordering

cost for this product to AED $40\mathrm{.}5$ per order.