Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.

a. State the order quantity and reorder point. 

b. Determine the annual holding and order costs. 

c. If a price break of $ 50 per order was offered for purchase quantities of over 2,000, would you take advantage of it? How much would you save annually?

Standard deviation of weekly demand Lead time Service probability $10.00 Item cost Order cost Annual holding cost (%) Annual demand Average demand 25 per week $250.00 33% of item cost 25,750 515 per week 1 week 95%