SAssignment - Inventory Management Problem (Jacobs & Chase, 14th ed., p. 551) 41. Alpha Products, Inc., is having a problem trying to control inventory. There is insuff icient time to devote to all its items equally. Here is a sample of some items stocke d, along with the annual usage of each item expressed in dollar volume. Ite Annual $ Usag Item Annual $ Usag m a JB $30,200 k $1,800 b 27,000 1 20,100 93,100 m 111,100 d 1,500 n 3,100 e 1,900 0 600 f 30,100 114,100 g 1,700 q 2,700 h 2,600 r 28,100 i 3,300 S 2,900 1,600 t 3,200 a. Can you suggest a system for allocating control time? b. Specify where each item from the list would be placed. 27. Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sara h wishes to establish a reorder point system to manage inventory of this standard m uffler. Use the following information to determine the best order size and the reorder point. Annual demand 5,600 mufflers Standard deviation o 5 mufflers per work f daily demand Item cost ing day $50 per muffler Annual holding cost 35% of item value Ordering cost Service probability $40 per order 90% Lead time 3 working days Working days 300 per year