Company As demand is uniform throughout the year and totals 18000 units per year

    Company As demand is uniform throughout the year and totals 18000 units per year. Ordering costs total $38 per order. The annual holding cost rate is 26% of the value of the inventory. The per-unit cost of inventory is $12.Company Bs demand is uniform throughout the year and totals 15000 units per year. The production setup costs total $84 per setup. The annual holding cost rate is 28% of the value of the inventory. The per-unit cost of finished product is $19. The production rate is constant and equivalent to 60000 units per year.Task:Write a brief response in which you:A. Determine the order size for Company A in the given scenario that would minimize total annual cost by using the economic order quantity model showing all of your work.B.Determine the lot size for Company B in the given scenario that would minimize total annual cost by using the economic production lot size model showing all of your work.

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