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FCC Cafeteria, which is a fast lunch spot in ankaya University campus, purchases several basic cooking ingredients from a supplier. The annual usage ( demand

FCC Cafeteria, which is a fast lunch spot in ankaya University campus,
purchases several basic cooking ingredients from a supplier. The annual usage (demand), purchasing cost,
and setup (order) cost of these ingredients are given in the table below. The inventory carrying rate is 0.10
per unit per year.
Ingredient A B C
Annual Demand (in units)1,0002,0001,000
Setup Cost ($ / order)243
Purchasing Cost ($ / unit)416
(a) Assume that all ingredients are ordered independently. What is the total inventory carrying cost of all
ingredients when all ingredients are optimally ordered?
(b) The cafeteria management wants to order all ingredients in each cycle,

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