Kim Clark has asked you to help him determine the best ordering policy for a new product. The demand for the new product has been forecasted to be about 1,000 units annually. To help you get a handle on the carrying and ordering costs, Kim has given you the list of last year's costs. He thought that these costs might be appropriate for the new product. COST FACTOR COST ($) COST FACTOR COST ($) Taxes for the warehouse 2,000 Warehouse supplies 280 Receiving and incoming inspection 1,500 Research and development 2,750 New product development 2,500 Purchasing salaries & wages 30,000 Acct. Dept. costs to pay invoices 500 Warehouse salaries & wages 12,800 Inventory insurance 600 Pilferage of inventory 800 Product advertising 800 Purchase order supplies 500 Spoilage 750 Inventory obsolescence 300 Sending purchasing orders 800 Purchasing Dept. overhead 1,000 He also told you that these data were compiled for 10,000 inventory items that were carried or held during the year. You have also determined that 200 orders were placed last year. Your job as a new operations management graduate is to help Kim determine the economic order quantity for the new product.