Question: 3 - A local bicycle store operates 365 days a year. The monthly holding cost for the bicycle is $10. The dealer sells an average

3 - A local bicycle store operates 365 days a

3 - A local bicycle store operates 365 days a year. The monthly holding cost for the bicycle is $10. The dealer sells an average of 30 bikes per week. If the dealer does not have a bike when a customer orders, then the bike becomes backordered. The shortage cost per unit of backordered is estimated to be $3 per week. The ordering cost for each order is $80. Determine the following: a. The optimum order quantity b. Maximum inventory level c. The portion of time customers have to wait for backordered bicycle d. Total cost

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