1. Consider the following information for inventory management. The item is demanded 50 weeks a year. The forecasting department does not have enough information to predict demand variability thus initial analysis will be based on constant demand. Item Cost $10.00 Order Cost $250.00 Annual holding cost (%) 33% of item cost Lead time 1 week Annual demand 25,750 (a) State the order quantity and reorder point. (b) Determine the annual holding and order costs