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A local food processing firm uses ( demand ) 2 4 , 0 0 0 ?glass jars to produce gourmet jams and jellies per year.

A local food processing firm uses ( demand ) 2 4 , 0 0 0 ?glass jars to produce gourmet jams and jellies per year. It costs the firm $ 6 0 ?each time it places an order for jars with the manufacturers. The inventory holding cost is $ 0 . 8 ?per jar per year. The stock is received 4 ?working days after an order has been placed. No backorders are allowed. Because of space limitations , ?suppose the firm orders 8 7 0 0 ?jars at a time. What would be the annual cost saved by shifting from the 8 7 0 0 - jars order policy to the EOQ? ( Please round your calculations to the nearest whole number. )

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