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Given the following information, formulate an inventory management system. The item is demanded 5 0 weeks a year. PARAMETER VALUE Item cost $ 7 .

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.
PARAMETER VALUE
Item cost $ 7.00
Order cost $ 243.00 per order
Annual holding cost 32% of item cost
Annual demand 22,100 units
Average weekly demand 442 per week
Standard deviation of weekly demand 20 units
Lead time 1 week
Service probability 95%
Determine the order quantity and reorder point.
Note: Use Excel's NORMSINV() function to find the correct critical value for the given \alpha -level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.
Determine the annual holding and order costs.
Note: Do not round any intermediate calculations. Round your final answers to 2 decimal places.
Assume a price break of $50 per order was offered for purchase quantities of 2,200 or more units per order. If you took advantage of this price break, how much would you save annually?
Note: Do not round any intermediate calculations (including number of setups per year). Round your final answer to 2 decimal places.

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