With an average of 24,000 units every year in its manufacturing process. The supply chain partner who charges a price per unit of $3000 for the component. Each order costs $500 to process. the operations manager wants to factor in inventory holding cost at 13.75% of the unit cost. (1) Determine the economic order quantity (EOQ) and total annual cost if ordering the EOQ number of units. How much will DBS be able to save by adopting the EOQ versus a current Q = 400? What is the reorder point with safety stock if lead time is 21 days, standard deviation of weekly demand is 3.75 and on an average the firm operates for a total of 48 weeks every year? Assume a z value of 1.645 corresponding to the desired service level What would the reorder point be without safety stock and how would you interpret each of the two reorder points? (3 marks) (2) Environmental considerations, material losses and waste disposal can be included in the EOQ model to improve inventory management practices. Assume that on an average 7.5% of the components that DBS purchases are damaged in transit thus becoming unusable and have to be disposed of. Disposal cost is $250 per unit. Find the new EOQ and total annual cost when the disposal cost is considered. What implications does this have for the sustainability of DBS inventory practices?