Exercise 1 Atkinson Hotel has a gift shop. Managing inventories has been a problem. One of the top-selling items at the gift shop is a bird feeder. Sales are 18 units per week. The cost of placing an order with the supplier is $45. Annual holding cost is $15, and the hotel operates 52 weeks per year. Management chose a 390-unit lot size (i.e., quantity to be ordered at each order) so that new orders could be placed less frequently. (1) What is the annual cost of the current policy of using a 390-unit lot size? (2) What lot size can achieve the minimum total annual inventory cost (i.e., economic order quantity (EOQ))?