JL$.81$ As a result of many process improvements and IT implementations $($like EDI$),$ Big Box$-$Mart has been able to reduce its order costs from $$34\mathrm{.}33$ to

$$6\mathrm{.}18$ when purchasing cases of paper towels from its main paper$-$products supplier. Annual demand is expected to be $196,000$ cases and annual holding

costs are $$14\mathrm{.}18$ per case.

Hint #$1$: This is a purchasing order quantity problem $($EOQ$),$ not a production order quantity problem. For this question we are combining a JIT concept $($lower

ordering costs$)$ with what you learned from a previous chapter $($inventory management$).$ If necessary, refer back to that chapter.

Hint #$2$: Remember to use cell references in all your formulas rather than using a rounded input value from a previous calculation.

Based on this information, what will be the new optimal order quantity $($using the reduced ordering cost$)?($Display your answer to the nearest whole number.$)$

When using the reduced ordering cost, as compared to the original ordering cost, by how many cases will the average inventory go down? $($Display your

answer to the nearest whole number.$)$

What will be the annual total combined savings to ordering costs and holding costs when using the reduced order cost, as compared to the original ordering

cost$?($Display your answer to two decimal places.$)$