Assume you have an inventory management system with the following parameters: Annual Demand = 950 units Price per unit =

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Assume you have an inventory management system with the
following parameters:
Annual Demand = 950 units
Price per unit = $25
Carrying cost per year = 12% of price
Order cost = $75 per order
Number of working days in a year = 280
Lead time = 10 days
What is the Economic Order Quantity (EOQ) for this product? (3
points)
What is the total number of orders that the firm should make in
a year to minimize the total inventory management costs? (2
points)
What is the Re-order point (ROP)? (3 points)
What is the total cost of inventory management? (2 points)