26. ABC Company has a demand for 2000 units each year. The cost of each unit is $100. It costs ABC $200 to place an order and $4 to carry a unit in the stock pear year. Further, the supplier needs week and a half to deliver their order. Assume 50 weeks to a year.

a. Calculate the Total Annual Cost of the System. (10 points)

D = 2,000 cases/year

CO = $200/order

CH = $4/case/year

Q: = ?

R= ?

L = 1.5 weeks

P = $100/case

T = ?

TS = ?