Question: please help me with this Demand for an item is equal to 40 units/week. The item is purchased from a supplier at a cost of

please help me with this

Demand for an item is equal to 40 units/week. The item is purchased from a supplier at a cost of $2.50/unit, and the order cost is $80/order. At present 600 units are ordered at a time. If the annual holding cost is 18% of item cost and the item is sold 50 weeks/year, consider the following.

  1. a.What is current total annual inventory cost? b.What is the optimal quantity? c.What is the total annual inventory cost for the optimal order quantity?

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