An emerging agribusiness company enganged in yoghurt production estimates that the carrying cost of one of their raw materials, milk, sourced externally is 15% of the unit cost of milk. Ordering cost is K9 per order. If the company estimates its annual requirement of milk as 48000 litres and the price of milk is K4 per liter.

a) What would be the most economical number of liters the company should order, every time it makes an order?

b) Compute the total annual cost of using your order size from part a.

c) How many orders should be placed in a year?