Q1: A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store ($100+Your Course ID*$10) and the company has an annual holding cost of 30 percent. The fixed cost of a replenishment order (including transportation) is $400. The store currently places a replenishment order every month for 500 jackets. 1. What is the annual holding and ordering cost? Your Course ID= 22 Unit cost per jacket C= 320 Monthly demand= 500 Annual demand D= 6000 Holding cost %= 30% Holding cost per unit per year H= 96 Ordering Cost per order S= 400 Current order quantity Q= 500 Cycle inventory= 250 Annual holding cost= 24000 Annual ordering cost= 4800 2. On average, how long does a jacket spend in inventory? Flow rate= Cycle inventory= Flow time= 6000 O per year 3. If the retail store wants to minimize ordering and holding cost, what order size do you recommend? Annual demand D= Ordering cost S= 6000 400 Unit holding cost H= 96 Optimal ordering quantity EOQ= 223.6067977 4. How much would the optimal order reduce holding and ordering cost relative to the current policy? Optimal annual holding cost= Holding cost reduction= Optimal annual ordering cost= Ordering cost reduction=