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One supermarket sells item A to the end customers and the manager of the supermarket knows that the annual demand rate for the item A

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One supermarket sells item A to the end customers and the manager of the supermarket knows that the annual demand rate for the item A is constant at 6000 units per year and the selling price (to end customers) is $8/unit. The item A is obtained only from one manufacturer, who charges a delivery fee of $70 for each order, regardless of the number of units delivered. The inventory holding cost per unit per year is 5 percent of the unit price, but the unit price is not a constant. The manufacturer charges $5/unit for 0 - 999 units ordered, but is willing to give a discount of 6% per unit for orders between 1000 - 1999 units and a discount of 7% per unit for orders of 2000 units and above. Which inventory control model should be used in order to manage the above inventory system? EPQ Model Quantity Discount Model Reordering Point Model Question 12 (6 points) Refer to the information in Q11. What order quantity will minimize the total cost (assuming that total cost =fixed ordering cost per year+ total holding cost per year + total purchase cost per year) ? 1901 units O 1891 units 1000 units 2000 units Question 13 (2 points) Refer to the information in Q11 and Q12. What is the optimal profit per year for this supermarket through the selling of this item? $19657.5/year $18654.5/year $16655.5/year $14663.5/year

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