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4. Sohar Company uses 20,000 units of a component per year. It costs OMR 400 to place and receive an order and carrying cost is

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4. Sohar Company uses 20,000 units of a component per year. It costs OMR 400 to place and receive an order and carrying cost is 30% of the unit price. The supplier quotes the following prices for the component: (5 Marks) Quantity (Units) 0-499 500-999 1000 and more! Unit price (OMR) 25 22.5 20.5 Required: (a) What is Economic Order Quantity? (b) What is the Optimal order Quantity? Show calculations in support of your

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