Suppose that your firm manufactures rubber chickens. Monthly demand for the chickens is $34,000$ units. Setup cost per order is $$$$83,$ and the annual holding cost percentage is $15\%.$ The chickens cost $$$$8$ to produce and are sold for$$ $$18.$

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Part $1$

$$a$)$ If you have one$$ warehouse, the economic order quantity for the chickens is

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The total of the annual setup and holding costs of this quantity is $$$

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$$b$)$ Suppose that you have $25$ warehouses instead of$$ 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

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The total of the annual setup and holding costs at each warehouse is $$$

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

The total of the$$ company$$s annual setup and holding costs is $$$

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

$$c$)$ Using centralized warehousing as in part$($a$)$ implies that oducts must be shipped over longer distances. Suppose that shipping costs $$$ $0\mathrm{.}76$ per unit when using one warehouse and $$$ $0\mathrm{.}66$ per unit when using $25$ warehouses. Which option should the company$$ choose, considering all relevant$$ costs?

Annual shipping cost for one warehouse is $$$$$

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Annual shipping cost for $25$ warehouses is $$$$$

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

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

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The total of annual setup and holding and shipping costs for $25$ warehouses is $$$

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

The company should choose the option of $25$warehouse$($s$).$