ATK$-$Blue, a chocolate manufacturer, has decided a plant for one major retail chain. Sales at

the retail chain average about $20,000$ packages a month and production at the plant keep

pace with this average demand. Each package of chocolate cost ATK$-$Blue $3$TL and is sold to

the retailer at a whole sale price of STL$.$ Both ATK$-$Blue and retaller use holding cost of $20$

percent per year. For each order placed, the retaller incurs an ordering the cost of $200$TL per

order placed. ATK$-$Blue incurs the cost of transportation and loading that totals $1000$TL per

order shipped.

a$)$ Glven that it is trying to minimize its ordering and holding cost, what lot size will the

retaller ask for in each order? What is the annual ordering and holding cost for the

retaller as a result of this policy? What is annual ordering and holding cost ATK$-$Blue as a

result of this policy? What is the total inventory cost across both parties as result of this

pollicy?

b$)$ What lot size minimizes the inventory cost $($ordering$,$ delivery, and holding$)$ across both

ATK$-$Blue and the retailer? How much reduction in cost relative to $($a$)$ results from this

pollicy?

c$)$ Design an all unit quantity discount that results in the retailer ordering the quantity in

$($b$)?$

d$)$ How much of the $1000$TL delivery cost should ATK$-$Blue past along the retaller for each

lot to get the retaller to order the quantity in $($b$)?$