Weekly demand for DVDs at a retailer is normally distributed with a mean of 1115 boxes and a standard deviation of 286.

Assume the following data:

There are 50 working weeks in a year.

Lead time for delivery of an order is 4 weeks.

The retailer takes ownership of the product only when the product reaches the store (i.e., the retailer is not responsible for pipeline inventory).

Fixed cost (ordering and transportation) per order is $100.

Each box of DVDs costs $4.

Percent carrying cost is 22% of the unit value.

The retailer currently orders 10576 DVDs when stock on hand reaches 5589.

The annual ordering cost under the current policy is 527.

Based on the information given above,1129 units of safety stock the is retailer currently holding.

What is the annual inventory holding cost under the current policy? The correct answer is 5646.96. How do you get this?