$1.$ ?A company purchases a particular component from an external supplier. The demand for the component is estimated to be $420$ ?units per month. The cost of placing an order with the supplier is $50.$ ?The component can be purchased from the supplier at a price per unit of $110$ ?if so desired. However the supplier also offers a quantity discount such that if the company orders $200$ ?or more the price per unit is only f$95.$ ?The cost of holding this component $($per year$)$ ?is estimated to be $12\%$ ?of the price. What advice can you offer the company? Clearly explain any procedure you follow in arriving at your advice.