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?

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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%