Fiber Technology. Inc.. manufactures glass bers used in the communications industry. The company's materials and parts manager is currently reyising the inventory policy for XL-ED. one of the chemicals used in the production process. The chemical is purchased in lid-pound canisters for $18 each. The rm uses 1200 canisters per year. The controller estimates that it costs $163 to place and receive a typical order of XL-ZO. The annual cost of storing XL-EU is $5.30 per canister