Determine the reorder point (ROP).

EOQ without discount =100units , total annual cost =$1,001,000

EOQ with 5% discount =102.6, total annual cost=$951200

EOQ with 10% discount=105.4, total annual cost= $901925

best order quantity =105.4

number of orders placed per year for the retailer if that order quantity is used=9.49

A retailer sells luxury shirts which are supplied by a manufacturer. The annual demand for these shirts is 1,000 units. The manufacturer sells the shirts to the retailer at the unit price of $1000. For the retailer, the holding cost of each shirt per year is estimated to be 1% of the unit price, and the ordering cost is $50 per order. Facing strong price competition, the retailer has asked the manufacturer for discounts. After negotiation, the manufacturer offers the following discount schedule for the retailer: Quantity ordered per order Discount on unit price Less than 200 shirts 0% 200-399 shirts 5% 400 shirts or above 10% The retailer has to determine the best order quantity after considering this quantity discount schedule. The retailer will include the annual product cost in the calculation of the total annual cost. Consistently, it takes 20 working days for the supplier to fulfill an order, and there are 250 working days a year for both manufacturer and retailer. All assumptions of the Economic Order Quantity (EOQ) model are satisfied. Show the units and steps of your calculation when you answer the following questions. Round your answers to one decimal place