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Question 1 [ 1 0 marks ] A milk company supplies bottled milk to a kindergarten at a steady rate of 6 0 0 bottles

Question 1[10 marks] A milk company supplies bottled milk to a kindergarten at a steady rate of 600 bottles per day. The cost to import the milk is $120 per time. The annual holding costs are 50 cents per bottle. The milk company operates 240 days a year. 1. Write down the per unit holding cost H, setup/ordering cost S, and the annual total cost as a function of order size (and you need to specify the parameters in the total cost function).2. What is the EOQ? Please use interger value for the optimal order size. 3. What are the annual total cost, the length of each order cycle and the average number of orders per year of ordering the EOQ every time? (Round your results to two decimal places.)

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