Suppose that your firm manufactures rubber chickens. Monthly demand for the chickens is $34,000$ units. Setup cost per order is $$85,$ and the annual

holding cost percentage is $19\%.$ The chickens cost $$11$ to produce and are sold for $$18.$

a$)$ If you have one warehouse, the economic order quantity for the chickens is units $($round your response to the nearest integer$).$

The total of the annual setup and holding costs of this quantity is $$,($round your response to the nearest whole dollar$).$

b$)$ Suppose that you have $25$ warehouses instead of one, and total demand is equally distributed among the warehouses. If setup and holding costs are the

same in the smaller warehouses as they would be for the single large warehouse, the EOQ for the chickens at each of the $25$ warehouses is

$($round your response to the nearest integer$).$

The total of the annual setup and holding costs at each warehouse is $ $($round your response to the nearest whole dollar$).$

The total of the company's annual setup and holding costs is $$,($round your response to the nearest whole dollar$).$

c$)$ Using centralized warehousing as in part $($a$)$ implies that products must be shipped over longer distances. Suppose that shipping costs $$0\mathrm{.}8$ per unit

when using one warehouse and $$0\mathrm{.}64$ per unit when using $25$ warehouses. Which option should the company choose, considering all relevant costs?

Annual shipping cost for one warehouse is $

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

Annual shipping cost for $25$ warehouses is $

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

The total of annual setup and holding and shipping costs for one warehouse is $

$($round your response to the nearest whole dollar$).$ I vill venmo you $$15$ if you get this question right. Leave your venmo. Btw. the last $2$ poeple got it wrong.