1. Items Bought from vender cost $20 each, and forecast for the next year's demand is 1,000 units. The cost of placing order is estimated to be $5 every time an order is placed. Storage costs are $4 per unit for each year. What quantity should be ordered to reduce inventory related costs?
2. Ray's Satellite Emporium desires to find out the best order size of their best selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has determined that each order costs $25 to place. Based upon the EOQ model, how many units should Ray order each time he places an order?