Question: Problem 20-15 Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Ite cost Order cost Annual holding

Problem 20-15 Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Ite cost Order cost Annual holding cost (5) Annual demand Average demand 25 per week 3 week(s) $10.00 $215.00 27 * of iten cost 22,600 452 per week Standard deviation of weekly demand Lead time Service probability a. Determine the order quantity and reorder point (Use Excel's NORMSINV() function to find your 2-value and then round that . value to 2 decimal places. Do not round any other intermediate calculations, Round your final answers to the nearest whole number) Optimal order quantity Reorder point lunits units b. Determine the annual holding and order costs. (Do not round any intermediate celelations. Round your final answers to 2 decimal places.) Holding cost Ordering cost

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