A roofing company orders clay tiles by the pallet. The company's demand during the year is constant. Last year, 200 pallets were consumed. The administration cost for an order is 25 USD per order. The cost of storage for one year is 20% of the purchase cost of the tiles. The company buys the bricks for 125 USD per pallet.

1. how many pallets should the company order each time to minimize the supplier's expense? a) 18 b) 20 c) 22 d) 24 e) 26

2. from next year the supplier will adjust the prices to inflation and increased CO2 taxes. The demand will not change. A determination of the order quantity results in a new EOQ of exactly 19 pallets. How much do the bricks cost per pallet? a) 123.50 USD b) 128.50 USD c) 133.50 USD d) 138.50 USD e) 143.50 USD

3. the roofer expects a strong decrease in demand for tiles in the year after next. He expects to need only 128 pallets. He additionally switches to a cheaper product, which he can again buy for 125 USD per pallet. In total, he places 16 orders. How high are the total annual sourcing costs? a) 350 USD b) 400 USD c) 450 USD d) 500 USD e) 550 USD