A company sells specialized medical equipment to hospitals. The demand for the equipment is relatively steady, with an annual demand of 5,000 units. Each unit is sold at a price of $2,000. The equipment is purchased from a supplier for $1,200 per unit, which is paid upon delivery. The supplier also charges a $500 fixed fee for each order, regardless of the order size. It takes one day to receive the equipment once an order is placed.

The company is considering investing in a new project that is expected to yield an annual return of 15%. The company operates for 5 days per week, and 50 weeks per year.

(a) List the values for the relevant parameters for the Economic Order Quantity (EOQ) model, namely, the demand rate (D), the unit purchasing cost (C), the setup cost (S), the cost of capital (i), the inventory holding cost (H) and the lead time (L).

(b) How many orders should they place per year in order to minimize their total weekly cost? What is their total annual cost in that case?

(c) What should be their reorder point if the orders are placed as described in (b)?