Scary$$ Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of cases every months from Scary Clowns. Scary Clowns incurs setup costs of $$$ every time it produces these$$ cases, and its annual holding cost per case is $$$$.$

Question content area bottom

Part $1$

a$.$ Which inventory model fits the best to this$$ problem?

A$.$

POQ model

B$.$

EOQ model

C$.$

$$One$-$time sale model

D$.$

Lumpy demand model

Your answer is correct.E$.$

$$All$-$units quantity discounts model

F$.$

Incremental quantity discounts model

b$.$ Scary Clowns should produce

$$

$991$ units in each batch $($round your response to the nearest $$integer$).$

c$.$ The total annual setup and holding cost for Scary Clowns using this policy is $$$

$$

$61036($round your response to the nearest $$dollar$).$