A building materials seller obtains his cement from a single A building materials seller obtains his cement from a single supplier. Demand is reasonably constant throughout the year. Last year the company sold 3000 tons of cement. It estimates cost of placing an order at around $20 per order. Inventory holding cost is estimated at 5% of purchase price. The company purchases cement at $200 per ton.REQUIRED:For each of the following order sizes, calculateNumber of orders per yearAverage inventory heldAnnual ordering costsAnnual inventory holding costSelect from the given order sizes the one that approximates the optimal order size. Give a reason for your selectionSuppose a discount of 2% on bulk purchases of 1000 units was offered, should it be accepted or rejected? Give your reasons.Possible order sizes: 100, 150, 200, 250, 300, 350, 400 Engineering & TechnologyIndustrial EngineeringSupply Chain Management MANA BSG09315
