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Suppose you are responsible for managing inventory of an item for which the weekly demand is 500 units. The cost to process and ship an order is a fixed $75. Inventory holding costs are charged at 15% of the variable purchasing cost per unit per year (assume a 50 week year). There are two vendors who can supply this item; both charge the same price of $4 per unit. a) (2 points) What is your ideal) optimal order quantity? How often should you place your or- der with this order quantity? b) (4 points) However, both vendors who can supply this item have their own restrictions on or- dering. Vendor A ships items only once every 4 weeks. Vendor B accepts only orders of 3,000 units or more. Which vendor would you choose? Why? Show calculations to support your recommendation. Suppose you are responsible for managing inventory of an item for which the weekly demand is 500 units. The cost to process and ship an order is a fixed $75. Inventory holding costs are charged at 15% of the variable purchasing cost per unit per year (assume a 50 week year). There are two vendors who can supply this item; both charge the same price of $4 per unit. a) (2 points) What is your ideal) optimal order quantity? How often should you place your or- der with this order quantity? b) (4 points) However, both vendors who can supply this item have their own restrictions on or- dering. Vendor A ships items only once every 4 weeks. Vendor B accepts only orders of 3,000 units or more. Which vendor would you choose? Why? Show calculations to support your recommendation