d. Consider an item replenished according to the EOQ formula, which has an annual demand rate of 5.200 units and a lead time of 36 weeks. Suppose the EOQ for this item equals 2,600 units. What reorder point should be used? 1800360020001000 Question 5 8 pts e. Suppose you have an item that obeys the assumptions of the EOQ model, but after you compute the EOQ(Q), you find that you only have enough space to hold 80% of this amount. So you decide then to produce in batches of size 0.8Q. What percentage increase in average annual holding and setup costs will you incur (over the corresponding costs at the EOQ)? 40% 80% 2.5% 8%