GrossePoint, Inc. Stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 Units. The company estimates its annual holdings cost for this item to be exist25 per unit. The cost to place and process an order from the supplier is exist75. The company operates 300 days per year and lead-time to received an order from the supplier is 9 working days.
(a) Calculate the economic order quantity (EOQ)
(b) Calculate the optimal total annual inventory cost
(c) By what percentage will the optimal total annual inventory cost change if the cost of placing and processing an order were to decrease by 10% and the per unit annual holding cost were to increase by 20%?