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2. Compute the total annual cost using your order size from part a. Number of orders= (Total quantity ordered (D)/Optimal Order Quantity) 10,400/204 = 50.98

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2. Compute the total annual cost using your order size from part a. Number of orders= (Total quantity ordered (D)/Optimal Order Quantity) 10,400/204 = 50.98 = 51 orders Cost of ordering 51 X $60 = 3,060 Cost of carrying (204/2) x $30 = 3,060 Total Cost 3,060 + 3,060 = $6,120

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