2) Power Lanka stocks and sells medium range diesel generators (225 to 938 kVA). The firm works 350 days in a year. The firm has gathered the following information from its Homagama office:

Demand = 300 units per day

Cost = $500 per unit

Ordering cost = $1,000 per order

Holding cost = 20% per year

The firms supply chain manager wants to calculate for the diesel generators:

a) Optimal lot size (EOQ)

b) Annual holding costs

c) Annual ordering costs

d) Cycle inventory (in units, and value)