Question: QUESTION 2. Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Parameter Value Item cost $10.00 Order

QUESTION 2. Given the following information,

QUESTION 2. Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Parameter Value Item cost $10.00 Order cost $250.00/order Annual holding cost 33% of item cost Annual demand 25,750 units Average weekly demand 515/week Standard deviation of weekly demand 25 units Lead time 1 week Service probability 95% a. State the order quantity and reorder point. b. Determine the annual holding and order costs. c. If a price break of $50 per order was offered for purchase quantities of over 2,000, would you take advantage of it? How much would you save annually

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