A large bakery buys flour in $20-$pound bags. The bakery uses an average of $1150$ bags a year.

Preparing an order and receiving a shipment of flour involves a cost of $$20$ per order. Annual

Carrying costs are $$60$ per bag.

a$)$ Determine the economic order quantity?

b$)$ What is the average number of bags on$-$hand?

c$)$ How many orders per year will there be$?$

d$)$ Compute the total cost of ordering and carrying flour?

e$)$ If holding costs were to increase by $$5$ per year, how much would the minimum total annual

cost$?$

The maintenance department of a large hospital uses about $920$ cases of liquid cleanser

annually. Ordering costs are $$10,$ carrying costs are $$8$ per case a year, and the new price

schedule is given in table below. Determine the optimal order quantity and the total cost.