Question: Benitez Security Systems has an annual demand for camera security systems of 1576 units. The average cost of camera security systems is $514. The handling

Benitez Security Systems has an annual demand for camera security systems of 1576 units. The average cost of camera security systems is $514. The handling or storage cost is estimated at 18% of the unit cost and the ordering cost is $26 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)

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?

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