Question: Question 1 Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost Order cost

Question 1 Given the following information, formulate an inventory management system. The

Question 1 Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost Order cost Annual holding cost Annual demand Average weekly demand VALUE PARAMETER $ 10.00 $250.00/order 33% of item cost 25,750 units 515/week Standard deviation of weekly demand Lead time Service probability VALUE 25 units 1 week 95% 1 Point a. Determine the order quantity and reorder point using the Q-model with uncertain demand. (Use Excel's NORM.S.INV() function to find the z value.) b. Determine the annual holding and order costs. Use the editor to format your answer

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