Knutson Products Inc. is involved in the production of airplaneparts and has the

Knutson Products Inc. is involved in the production of airplaneparts and has the following inventory carrying and storagecosts:1. Orders must be placed in round lots of 100 units2. Annual unit usafe is 250000. (assume a 50 week year in yourcalculations)3. The carrying cost is 10 percent of the purchase4. The purchase price is $10 per unit5. The ordering cost is $100 per order 6. The desired safety stockis 5000 units. (this does not include delivery time stock)7. The delivery time is 1 weekGiven the following information:a. Determine the optimal EOQ Level?b. How many orders will be placed annually?c. What is the inventory order point?d. What is the average inventory level?e. What would happen to the EOQ if annual unit levels doubled?f. If carrying costs double what would happen to the level ofEOQ?g. if ordering costs double what will happen to the level ofEOQ?h. If the selling price doubles what will happen to the EOQ?Whats the elasticity of EOQ with respect to selling price?

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