Ordering cost	$25	Setup cost	$21
I	20%	P (Production rate)	45,000
D	30,000	C	$6.75

Use the above information to calculate the following:

1. The value of Q at N= 26
2. Optimum Q*
3. Number of Orders with the optimum Q*
4. Annual holding cost and annual ordering cost (H10) in both cases
5. If the ordering cost is expected to be changed in the coming year with a % between 10 to 50. What is the impact of this changes in the ordering cost on both cases (when ordering 26 times and EOQ)? Show how these results can help the manager in taking a decision regarding the quantity to be ordered. Should he go for EOQ or order 26 times? Explain your answer?
6. The supplier offers the company the following quantity discounts:

IF Q < 900 C = $6.85

IF Q >= 900 and Q < 1200 C = $6.45

IF Q <= 1200 C = $6.25

At which price they should be ordered? Explain your answer?

7. The manager evaluates their situation and noticed that they can produced the units they need instead of purchasing them. Help the manager to take a decision regarding purchase/produce (compare EOQ and EPL).