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Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs a xed order placement, transportation, and receiving cost of

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Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs a xed order placement, transportation, and receiving cost of $4,000 each time an order is placed. Each computer costs Best Buy 5500 and the retailer has a holding cost of 20 percent. The store manager orders in lots of 200 units for each replenishment order. Calculate: 1. The number of times the manager should place an order (order frequency) to meet the annual demand, {2 Points] 2. The annual ordering cost. (2 Points) 3. The annual holding cost. {2 Points] 4. Is lot size of 200 units for each replenishment order the optimal order quantity? If it is not, what is the optimal order quantity? {2 Points] 5. How much annual savings would the manager make by ordering in lots of optimal order quantity' compared to the lots of 200? [2 Points]

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