Question: Benitez Security Systems has an annual demand for camera security systems of 1407 units. The cost of typical camera security systems is $ 511. The

Benitez Security Systems has an annual demand for camera security systems of 1407 units. The cost of typical camera security systems is $ 511. The handling cost is estimated at 11% of the unit cost and the ordering cost is $ 32 for each 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 an order from the supplier is 10 business days.

1a. What is the EOQ (economic order quantity) WITHOUT the discount?

1b. What is the ATC (annual total cost) WITHOUT discount?

1c. What is the ATC (annual total cost) WITH discount?

1d. What is the optimal order quantity to minimize the cost of managing inventory?

1e. What is the ROP (reorder point)?

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