Another popular item at the bookstore is a jacket. Sales are 35 units per week, and the supplier charges $55 per unit. The cost of placing an order with the supplier is $25. Annual holding cost for each unit is 9 percent of a hoodie's value, and the store operates 49 weeks per year (it is closed over the holidays). Assume that there is no lead time and no uncertainty in the sales volume.

1. Management currently chooses to order 335 units when they place an order. What is the annual ordering cost of the current ordering policy (in dollars)?Provide calculation.

• 8375
• 127.99
• 5.12
• 2.61

2. What is the annualholding (inventory)cost of the current ordering policy (in dollars)? Provide calculation.

• 829.13
• 611.11
• 4.95
• 1658.25

3. What is the total annualcost(ordering and holding costs) of the current ordering policy (in dollars)? Note: doNOT include the procurement cost. Provide calculation.

• 701.14
• 957.12
• 1786.24
• 739.1
• 7.56
• 8.06

4. What is the optimal order quantity? Provide calculation.

• 19
• 293
• 132
• 977

5. What is thetotal annualcost(ordering and holding costs) of theoptimalordering policy (in dollars)? Note: doNOT include the procurement cost. Provide calculation.

• 324.8
• 326.7
• 460.7
• 651.5

6. How much can the shop save in terms of the annual cost if they order optimally (in dollars)? Provide calculation.

• 651.5
• 305.6
• 496.44
• 177.6