Company A provides an integrated genetic test. Demand for the test is relatively stable at an average of 1000 tests per year. Company A can purchase the testing kits from the supplier in a batch. Each test requires an advanced testing kit that can be purchased from a sole supplier at a wholesale price of $100 each. The supplier charges a fixed ordering cost (including shipping) of $80 for each batch Company A orders, regardless of the size of the batch. As soon as the batch is delivered, Company A pays the supplier out of is an operational cash account, which generates interest for Company A on a compound annual growth rate (CAGR) of 4%. Test kits are very small parts that do not require any physical resources (e.g., extra space or climate control) to hold. Company A has made an inventory decision of ordering 200 units in a batch each time it orders from the supplier. Which of the following is NOT true? O The solution will impose an annual inventory holding cost that is equal to the annual total setup cost. Company A is expected to order 5 times a year. O The solution will impose an annual inventory setup cost that is much higher than the annual inventory holding cost. O This is the EOQ solution