Part i) Last year, the annual demand for a certain piece of merchandise that is inventoried at a department store warehouse was 13525 units. The annual demand is expected to increase 8 percent in the next year. One unit of the product costs 7.60, and the selling price is 18.65. The holding cost rate = 11%/yr. Cost to place an order for the merchandise is 55. Determine: (a) the economic order quantity; and (b) the total inventory cost for this case. Part ii) A starting batch of 3500 work units is processed through 5 sequential operations, each of which has a fraction defect rate of 5%. (a) How many good parts are in the final batch? (b) How many defects are in the final batch? (c) What is the % yield of the operation sequence? Part iii) Explain with the aid of a sketch the principle of the EOQ formula