An electronic store uses continuous review policy to manage the inventory of its high selling monitor model. The monitor has the following characteristics. The annual demand for the monitor is (4000 *2) units per week. The monitors are bought from an offshore supplier at a unit price of 7000 AED per unit and each order costs 80000 AED. The holding cost of laptops is 25% of the value of the product.

1. Calculate the annual demand using the no 2
2. What is the economic order quantity? EOQ?
3. What would be the average number of orders in a week?
4. What would be the average time between orders (in weeks)?
5. What would be the average inventory level?
6. The electronic store is considering a local supplier. The ordering cost of the new supplier is 65000 AED however the unit price of the monitor is 9000 AED. Should the electronic store change its supplier?