Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every four weeks. Data for both products are as follows: ITEMTEGDIWWIDGET Annual demand 11,000 8,000 Holding cost (% of item cost) 10% 20% Setup or order cost$110.00 $10.00 Lead time 4weeks 4week Safety stock 65units 7units Item cost$15 $8