Question: 5. (3 points) Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The unit

5. (3 points) Annual demand for a product is

5. (3 points) Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The unit cost for each product is $5. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. (1). Calculate economic order quantity and total annual cost. (2). To provide a 98% service probability, what must the reorder point be? (Use the closest number in the normal distribution table)

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