In inventory control, the annual usage value of an item is calculated using which of the following formulas?

A manufacturing company uses 25,000 components at a constant rate during a year. Each order placed with the supplier of the components is for 2,000 components, which is the economic order quantity. The company holds a buffer inventory of 500 components. The annual cost of holding one component in inventory is $2. What is the total annual cost of holding inventory of the component?

Data relating to a particular stores item are as follows: - Average daily usage: 400 units - Maximum daily usage: 520 units - Minimum daily usage: 180 units - Lead time for replenishment: 10 to 15 days - Reorder quantity: 8,000 units What reorder level (in units) will prevent stock-outs?