Problem 11-15 Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year 20 per week Item cost Order cost Annual holding cost (%) Annual demand Average demand $ 8.00 $ 28700 Standard deviation of weekly demand Lead time Service probability 3 weeks 99 % 33 27,400 % of item cost t> 548 per week a. Determine the order quantity 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 "z" 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 $55 per order was offered for purchase quantities of 2,500 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 savings References eBook & Resources