Given the following information, formulate an inventory management system. The item is demanded $50$ weeks a year.

Determine the annual holding cost. $($Round your answers to $2$ decimal places$)$

Item cost $$10\mathrm{.}00$ Average demand $515$ per week

Order cost $$250\mathrm{.}00$ Lead time $1$ week

Annual holding cost $(\%)33\%$ of item cost

Annual demand $25,750$

Average demand $515$ per week

Question $10$ options:

$$3,450\mathrm{.}75$

$$3,300$

$$3,258\mathrm{.}75$

$$3,255\mathrm{.}49$

Hide hint for Question $10$

EOQ$=1,975$

Annual Holding cost $=($Q$/2)$ x H $($Q: EOQ, H: unit holding cost$=$item cost x annual holding cost $\%)$