Chapter 12. Question 24. Please do all 1-3 parts. Show step by step on how you got each answer.

a) Given the current policy of ordering 70 units at a time, the total of annual ordering cost and the annual holding cost is $ ______ (round your response to the nearest whole number).

b) if the company used the absolute best inventory policy, the total of ordering and holding cost is $_____ (round your response to the nearest whole number).

c) the reorder point is ____ units (round your response to the nearest whole number).

Phillip Flamm's Computer Store in Texas sells a printer for $150. Demand is constant during the year, and annual demand is forecasted to be 840 units. Holding cost is $30 per unit per year, whereas the cost of ordering is $80 per order. Currently, the company is ordering 12 times per year (70 units each time). There are 250 working days per year, and the lead time is 10 days