The following table contains the monthly usage and unit costs for a random sample of $15$ items from a list of $2,000$ inventory items at a health care facility,

$\backslash$table$[[$Item$,$Unit Cost,Monthly Usage$],[$K$34,10,200],[$K$35,25,600],[$K$36,36,150],[$M$10,16,25],[$M$20,20,80],[$Z$45,80,700],[$F$14,20,300],[$F$95,30,800],[$F$99,20,60],[$D$45,10,550],[$D$48,12,90],[$D$52,15,110],[$D$57,40,120],[$N$08,30,40],[$P$05,16,500]]$

a$.$ Develop an A$-$B$-$C classification for these items.

b$.$ How could the manager use this information?

c$.$ After reviewing your classification scheme, suppose that the manager decides to place item P$05$ into the A category. What are some possible explanations for this decision?

$5.$ A large bakery buys flour in $25kg$ bags. The bakery uses an average of $4,860$ bags a year. Preparing an order, receiving the shipment, and paying the invoice costs $$10$ per order. Annual holding cost is $$5$ per flour bag. $$ LO$3$

a$.$ Determine the economic order quantity.

b$.$ What is the average number of bags on hand $($i$.$e$.,$ average cycle inventory$)$ if EOQ is used?

c$.$ How many orders per year will there be if EOQ is used?

d$.$ Calculate the total annual cost of ordering and holding flour for EOQ.

e$.$ If ordering cost were to increase by $50$ percent per order, by what percentage would the EOQ change?