The annual demand for the Super Thrive brand plant food manufactured by

Cumberbatch and Dunst Indoor Plants Company is $20,000$ pounds. The annual holding cost $($also known as carrying

charge$)$ is $$0\mathrm{.}05$ per pound, and Operations Manager Kirsten Benedict has calculated the cost of setting up machinery for

making the plant food to be $$20.1.$ What is the economic order quantity $($EOQ$)$ based on the information provided? $($

Round the EOQ to the next whole number$)?2.$ What is the annual holding $($carrying$)$ cost for the EOQ that you

calculated? What is the total annual setup cost for the EOQ that you calculated? $3.$ Before the adoption of the EOQ

model, the company had used a batch size of $5,000$ pounds

$($i$.$e$.,Q=5,000)$ for making Super Thrive. What is the annual holding $($carrying$)$ cost based on this batch size? What is

the annual setup cost based on the the $5,000$ pounds batch size? $4.$ Compare the total cost of inventory management $($

holding $+$ setup cost$)$ for the two quantities $(5,000$ and the EOQ you calculated$)$ and comment on the difference. Based

on your knowledge of the idea behind EOQ, what explains the differences $($in words $-$ no need to reconcile the exact

differences quantitatively$)$