Question: Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. em cost Order cost Annual holding cost ()

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. em cost Order cost Annual holding cost () Annualcomand Average demand $ 1200 $ 253.00 36 % of the cost 26.100 522 per week Standard deviation of weekly demand Lead time Service probability 20 per week 2 w 95 a. Determine the order quantty and reorder point (Use Excel's NORMSINVO function to find the correct critical value for the given a level. Do not round intermediate calculations. Round 2 value to 2 decimal places and final answer to the nearest whole number) Optimal order quantity Reorder point units units b. Determine the annual holding and order costs. (Round your answers to 2 decimal places.) Holding cost Ordering cost c. Assume a price break of 555 per order was offered for purchase que of 2.300 or more units per order. If you took advantage of this price break, how much would you save annually? (Round your answer to 2 decimal places.) Annual saving

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