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

PARAMETER	VALUE			PARAMETER	VALUE
Item cost	$	12.00		Standard deviation of weekly demand	20	per week
Order cost	$	275.00		Lead time	1	week
Annual holding cost		32	% of item cost	Service probability	90	%
Annual demand		22,700
Average weekly demand		454	per week

a. 1-Determine the order quantity____Units?

2- Reorder point. ____Units?

(Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.)

b. 1-Determine the annual holding____Units?

2-Order costs____Units?.

(Round intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)

c. Assume a price break of $50 per order was offered for purchase quantities of 2,200 or more units per order. If you took advantage of this price break, how much would you save annually.

Annual Savings____?

(Do not round intermediate calculations. Round your answer to 2 decimal places.)