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Question 2 - North Face Input Annual demand, D Monthly demand, d Cost per jacket, Holding cost, h Fixed cost per orders 6,000 500 $ 100.00 25% $ 100.00 A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent. The fixed cost of a replenishment order (including transportation) is $100. The store currently places a replenishment order every month for 500 jackets. What is the annual holding and ordering cost? On average, how long does a jacket spend in inventory? If the retail store wants to minimize ordering and holding cost, what order size do you recommend? How much would the optimal order reduce holding and ordering cost relative to the current policy? 500 Replenishment Order of 500 Batch size, a Annual holding cost Annual order cost Total annual cost Time in inventory Months Optimal Order Policy Optimal batch size, EOQ Annual holding cost Annual order cost Total annual cost Time in inventory Month(s)