Benitez Security Systems has an annual demand for camera security systems of 1,500 units. The average cost of camera security systems is $503. The handling or storage cost is estimated at 19% of the unit cost and the ordering cost is $35 per order. If the owner orders in quantities of 250 or more, he can get a 5% discount on the cost of camera security systems. The company operates 300 days a year and the waiting time to receive orders is 10 business days. (12 points) 1. What inventory management model should we use to solve this problem? Model to handle dependent demand Model Economic Quantity to Produce Model Economic Quantity to Order Model for discount purchases 2. What is the optimal order quantity (EOQ or Q*) for each order in the non-discount sale? Response 3. What is the total annual cost (ATC) of managing inventory for the offer that does not offer a discount? Response 4. What is the total annual cost (ATC) of managing inventory for the discount offer? Response 5. To minimize the cost of managing inventory, the option to select is: Produce instead of buy buy discount Not buying Buy without discount 6. What is the optimal order quantity to minimize the cost of managing inventory? Response What is the ROP reorder point? Response