ABC Company sells large industrial machines that have an inventory value of Php 1.5 million each. The company expects to order 500 machines during the next calendar year. Ordering cost is Php 1,000 per order and carrying cost is 20% of the value of the average inventory. Find the following:
a.) The optimal number of orders per year.
b.) The proper order quantity.
c.) Annual carrying and annual ordering costs.
d.) Optimal total inventory cost per year.