Tim Madsen is the purchasing agent for Computer Tim Madsen is the purchasing agent for Computer Center, a large discount computer store. He has recently added the brand$-$new computer, the Power model, to the store$$s stock of goods. Sales of this model now are running at about $13$ units per week. Tim purchases these computers directly from the manufacturer at a unit cost of $$3,000,$ where each shipment takes half a week to arrive. Tim routinely uses the basic EOQ model to determine the store$$s inventory policy for each of its more important products. For this purpose, he estimates that the annual cost of holding items in inventory is $20\%$ of their purchase cost. He also estimates that the administrative cost associated with placing each order is $$75.$ Tim currently is using the policy of ordering $5$ units of Power model computers at a time. $[1$ year $=52$ weeks$]$ a$)$ b$)$ c$)$ d$)$ Calculate the optimal order quantity. With the optimal order quantity obtained above, how frequently will orders need to be placed on the average? Calculate the total inventory cost $($$$)$ per year with optimal order quantity. $($ordering and holding cost$)$ Calculate the total inventory cost $($$$)$ per year with current policy. $($ordering and holding cost$)$ e$)$ How much does the optimal inventory policy reduce the total inventory cost $($$$)$ per year from the current policy described in the question? f$)3.$ How much is the reduction in f$)$ in percentage?Center, a large discount computer store. He has recently added the brand$-$new computer, the Power model, to the store$$s stock of goods. Sales of this model now are running at about $13$ units per week. Tim purchases these computers directly from the manufacturer at a unit cost of $$3,000,$ where each shipment takes half a week to arrive. Tim routinely uses the basic EOQ model to determine the store$$s inventory policy for each of its more important products. For this purpose, he estimates that the annual cost of holding items in inventory is $20\%$ of their purchase cost. He also estimates that the administrative cost associated with placing each order is $$75.$ Tim currently is using the policy of ordering $5$ units of Power model computers at a time. $[1$ year $=52$ weeks$]$ a$)$ b$)$ c$)$ d$)$ Calculate the optimal order quantity. With the optimal order quantity obtained above, how frequently will orders need to be placed on the average? Calculate the total inventory cost $($$$)$ per year with optimal order quantity. $($ordering and holding cost$)$ Calculate the total inventory cost $($$$)$ per year with current policy. $($ordering and holding cost$)$ e$)$ How much does the optimal inventory policy reduce the total inventory cost $($$$)$ per year from the current policy described in the question? f$)3.$ How much is the reduction in f$)$ in percentage?