Please use the Excel template to answer this question.

Given the following information, formulate an inventory management system, assuming the weekly demand follows the Normal distribution.

Item cost	$10.00	Weeks per year	50
Ordering cost	$250.00	Std. dev. of weekly demand	25
Annual holding cost (%)	33%	Lead time	1 week
Annual demand	25750	In-stock rate (%)	95%
Average demand	515 per week

1. Calculate the economic order quantity and the reorder point
2. Calculate the annual inventory holding and ordering costs.

Item cost $10.00 Ordering cost $250.00 Annual holding cost (%) 33% Annual demand 25750 Average demand per week 515 Weeks per year 50 Std. dev. of weekly demand 25 Lead time (weeks) 1 In-stock rate (%) 95% round to the nearest Integer part a Optimal order quantity (Q*) z Optimal reorder point (R) Z part b holding cost per unit per year annual inventory holding cost Annual ordering cost