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AFG Company supplies an electronic amplifiers to a company that incorporates these amplifiers to C units and other home appliances. The annual demand for these

AFG Company supplies an electronic amplifiers to a company that incorporates these amplifiers to C units and other home appliances. The annual demand for these amplifiers is 4000 units, and this is co of ant throughout the year. The cost per unit is S10, and the inventory holding rate is estimated to be 5% of the unit cost. The ordering cost per order is $40 per order.
*To minimize cost, how many units should be ordered each time an order is placed?
*Estimate the ordering cost, holding cost, and the total cost if co as are minimized?
*Suppose that the company was ordering 1200 unit per order, what is the total cost under this policy and by how much it will be higher/lower than the total cost in b?
*For the ordering policy in c to be optimal, how much should be the ordering cost per order?

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