ill's Job Shop buys two parts $($Tegdiws and Widgets$)$ for use in its production system from two different suppliers. The parts are needed throughout the entire $52-$week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every five weeks. Data for both products are as follows:

ITEM TEGDIW WIDGET

Annual demand $12,0007,000$

Holding cost $(\%$ of item cost$)20\%25\%$

Setup or order cost $$130\mathrm{.}00$ $$15\mathrm{.}00$

Lead time $4$ weeks $4$ week

Safety stock $60$ units $5$ units

Item cost $$5$ $$4$