Victory Victory is a retailer, specialising in vitamin supplements and health foods claimed to enhance performance. One of the products purchased by Victory for resale is a performance enhancing vitamin drink called 'Buzz'. Victory sells a fixed quantity of 200 bottles of Buzz per week. The estimated storage costs for a bottle of Buzz are $2.00 per annum per bottle. Delivery from Victory's existing supplier takes two weeks and the purchase price per bottle delivered is $20. The current supplier charges a fixed $75 order processing charge for each order, regardless of the order size. Victory has recently been approached by another supplier of Buzz with the following offer: 1 The cost to Victory per bottle will be $19 each. 2 There will be a fixed order processing charge of $250 regardless of order size. 3 Delivery time will be one week. 4 Note Victory estimates that due to packaging differences, the storage cost per bottle will be $1.80 per annum per bottle. The economic order quantity Q, which will minimise costs, is: Q= 2COD Ch Where Co The cost of making one order D = Annual demand Ch The holding cost per unit per annum