1.A commodity has a steady rate of demand of 2000 per year. Placing an order cost $10 and it costs $0.10 to hold a unit for a year. (For 100 q 1000)

a)On a graph plot order and holding costs for a year, together with total costs.

b)Use the graph to estimate the economic ordering quantity (EOQ) that minimize total cost. Confirm this value using the EOQ formula.

c)Find the number of orders placed per year and the length of the inventory cycle.