Amazon sells 20,000 units of consumer electronics from Samsung every month. Each unit costs $100 and Amazon has a holding cost of 20 percent. The fixed clerical and transportation cost for each order Amazon places with Samsung is $4,000. What is the optimal size of the order that Amazon should place with Samsung? With the goal of reducing inventories, Amazon would like to reduce the size of each order it places with Samsung to 2,500 units (allowing it to get four replenishment orders every month). How much should it reduce the fixed cost per order for an order of 2,500 units to be optimal? Input Annual demand, D Cost perunit, Holding cost, Fixed cost per order, S $ 240,000 100.00 20% 4,000.00 $ Optimal order policy Optimal batch size, Q* Annual holding cost Annual order cost Total annual cost Desired Order Size of 2,500 Desired optimal order size, Q* Required fixed cost S*