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1 Herbert Adams owns two bicycle stores selling bicycles. One particular model is highly popular with annual sales of 5,000 units per year in each
1 Herbert Adams owns two bicycle stores selling bicycles. One particular model is highly popular with annual sales of 5,000 units per year in each store. The cost of one such bicycle is $2000. Annual holding costs are 20% of the item's cost, and the ordering cost is $100. The store is operating 365 days a year. Please provide detailed calculation in MS Word or Excel (1) If each store orders bicycles separately, what is the economic order quantity in each store? (2) If the two stores order bicycles jointly, what is the combined economic order quantity? (3) If each store orders separately, what is the total annual inventory cost (ordering cost plus holding cost) of two stores combined? (4) What are the annual inventory cost (ordering cost plus holding cost) if the two stores order jointly? (5) Explain briefly why the inventory costs change
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