3. Explain why a periodic-review system, in general, will carry more inventory than a continuous-review system. 4. Caterpillar has its engine plant in Austin, Texas and its equipment assembly plant in Denver, Colorado. Engines are transported between the two plants using trucks. Each truck trip costs $1,500. The assembly plant sells 300 finished products each day. Each engine costs $450 and Caterpillar incurs a holding cost of 20% per year. What is the cycle inventory of engines at Caterpillar? 5. A North Face retail stores in Chicago sells 500 jackets each month. Each jacket costs the stores $100 and the company has an annual holding cost of 25%. The fixed cost of a replenishment order (including transportation) is $100. The store currently places a replenishment order every month for 500 jackets. What is the annual holding and ordering costs? On average how long does a jacket spend in inventory before being sold? If the store wants to minimize ordering and holding costs, what order size would you recommend