Suppose that the Ace Radio Components Company has a product for which the assumptions of the inventory model are valid.The company operates for 226 days per year. Information obtained by the company is as follows:

Demand= 3,000 units per month

I= 7% (inventory cost per unit

C= $640 per unit

C_h= ????

C_o=$75 per order

m= 7 days.

a.What is the EOQ for this component?

b.What is the reorder point?

c.What is the cycle time?

d.What are the total annual holding withyour recommended EOQ

e.What is the ordering costs associated with your recommended EOQ?