002 - Production Final Spring 2020/ V2 Weekly Average Demand is 515, Standard Deviati. OPMA 3306 CH. 8 T/F PR 20/02 Saved Help Save & Exit Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost Order cost Annual 'holding cost Annual demand Average weekly demand VALUE $ 10.00 $250.00/order 331 of item cost 25,750 units 515/week PARAMETER Standard deviation of weekly demand Lead time Service probability VALUE 25 units 1 week 958 a. Determine the order quantity and reorder point. (Use Excel's NORM.S.INVO function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Optimal order quantity Reorder point b. Determine the annual holding and order costs. (Round intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) units Holding cost Ordering cost b. Determine the annual holding and order costs. (Round intermediate calculations to 2 decimal places. Round your answers to decimal places.) units Holding cost Ordering cost c. Assume a price break of $50 per order was offered for purchase quantities of 2,000 or more units per order. If you took advantage of this price break, how much would you save annually? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual savings