Use the below information for the next 5 questions:

A wholesale company is reviewing its inventory costs for a high-volume item which has an annual demand of 72,000 units, with a per-unit purchase price of $10. The ordering cost is estimated at $25, and the annual inventory carrying cost for the warehouse is computed at 30% of the price while the in-transit shipping factor is 13%. The in-transit shipping time is 14 days.

The forecasted average demand is 200 units per day, with a standard deviation of the forecast error of 20 units per day. The average order lead time is 16 days with a standard deviation of order lead time of 3 days. A 98% customer service level is to be maintained. There are 360 days in a year.

What is the annual carrying cost for this product? $1,642.50 $989.04 $2,813.74 $1,225.16 What is the annual ordering cost for this product? $1,942.50 $3,336.62 $1,643.84 $2,077.53 What is the cost of holding safety stock for this product? $1,642.50 $3,720 $821 $1,643.84 What is the annual in-transit carrying cost for this product? $2,224.75 $3,640 $1,642.70 $2,578 What is the total annual cost of this product? $8,045.50 $12,787.64 $10,646.34 $9,112.04 What is the annual carrying cost for this product? $1,642.50 $989.04 $2,813.74 $1,225.16 What is the annual ordering cost for this product? $1,942.50 $3,336.62 $1,643.84 $2,077.53 What is the cost of holding safety stock for this product? $1,642.50 $3,720 $821 $1,643.84 What is the annual in-transit carrying cost for this product? $2,224.75 $3,640 $1,642.70 $2,578 What is the total annual cost of this product? $8,045.50 $12,787.64 $10,646.34 $9,112.04