38a0c32-163-4733-9384-e3de67ab155d.jpg Open with 2. Consider two kinds of pills A and B, which are both needed by ABC Hospital. The demand for pill A is 5000 units/year, for pill B is 6500 units/year. ABC originally purchased both of them from the XYZ Company. The unit purchase cost is $4/unit and $6/unit for A and B respectively. The fixed cost of placing an order is $50 and $70 respectively. ABC replenishes these items according using EOQ values with an interest rate of 20%. (a) Find the optimal order quantity of pills A and B and their corresponding optimal costs. 72 [4] 1.2 +36=40044.98 Now XYZ Company makes an offer to replenish these items jointly at a total ordering cost of $100. (b) Derive the cost function in terms of the common ordering cycle, T. [2] T (c) Derive the expression of the optimal value of T. [2] (d) Determine the optimal order quantities of pills A and B under this offer. [1]