Given the following information, formulate an inventory management system. The item is demanded 50 w 1 answer below »

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.   Item cost $ 10.00   Standard deviation of weekly demand 25 per week   Order cost $ 250.00   Lead time 1 week   Annual holding cost (%) 33 % of item cost   Service probability 95 %   Annual demand 25,750   Average demand 515 per week a.

Determine the order quantity and reorder point. (Round your answers to the nearest whole number.)   Optimal order quantity units   Reorder point units   b.

Determine the annual holding and order costs. (Round your answers to 2 decimal places.)   Holding cost $   Ordering cost $ c.

If a price break of $50 per order was offered for purchase quantities of over 2,000, what would be the annual savings? (Round your answer to 2 decimal places.)   Annual savings $

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