Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.

PARAMETER	VALUE
Item cost	$12.00
Order cost	$213.00	/order
Annual holding cost	20	% of item cost
Annual demand	26,100	units
Average weekly demand	522	/week
Standard deviation of weekly demand	20	units
Lead time	2	week
Service probability	95	%

a. Determine the order quantity and reorder point. (Use Excels NORMSINV( ) function to find your z-value and then round that z-value to 2 decimal places. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.)

b. Determine the annual holding and order costs. (Do not round any intermediate calculations. Round your final answers to 2 decimal places.)

c. Assume a price break of $55 per order was offered for purchase quantities of 2,300 units per order. If you took advantage of this price break, how much would you save annually? (Do not round any intermediate calculations (including number of setups per year). Round your final answer to 2 decimal places.)