20 points Question 1 An inventory manager is seeking to provide good service to his customers and accordingly sets the ordering quantity (lot size) for a particular item to be 20 times the maximum backorder level allowed. He estimates the demand to be 35 units per month, the ordering cost to be 5100 per order, the unit purchasing cost to be $50 and the unit holding cost to be $10 per year. Following the manager's policy, determine a) The shortage level and the order quantity b) Total inventory costs per year 20 points Question 1 An inventory manager is seeking to provide good service to his customers and accordingly sets the ordering quantity (lot size) for a particular item to be 20 times the maximum backorder level allowed. He estimates the demand to be 35 units per month, the ordering cost to be 5100 per order, the unit purchasing cost to be $50 and the unit holding cost to be $10 per year. Following the manager's policy, determine a) The shortage level and the order quantity b) Total inventory costs per year