3. Tweedy Guitars of St. Louis, MO. is a distributor ofhollow-body guitars, which are sold to retailers, online musicstores, and direct to customers. The guitars are manufactured inVentura, CA. and currently shipped to St. Louis, MO. Jeff Tweedy,vice president of logistics, has asked you to evaluate his overallinventory management system. In order to this, you start with abasic analysis of inventory management you learned at WCU. You havecollected the following information. Use it to answer questions 3a,3b and 3c:

• Annual demand: 3,900 guitars (assume 240 working days/year andconstant demand)

• Guitar value: $1,500 each • Inventory carrying cost (annual):9%

• Cost per order to replenish inventory: $125

• Unit weight: 31 lbs. per guitar.

a) What is the economic order quantity for Tweedy Guitars inunits? In pounds?

b) Using the EOQ you calculated in part s, what is the totalannual cost?

c) What is the ROP (assume lead-time is constant at 3 days)