$3.$ Reconsider the bolt example in Problem $2.(52$ weeks per year$)$ Suppose that although we

have estimated the demand to be $60$ units per week, it turns out that it is actually $120$ units

per week $($i$.$e$.,$ we have a $100$ percent forecasting error$).$

$($a$)$ If we use the order size calculated in Problem $2($i$.$e$.,$ using the erroneous demand estimate$),$

what will the annual holding and ordering cost be under the true demand rate? $(3$ points$)$

$($b$)$ What would the annual total inventory management cost be if we had used the optimal

order size under the true demand rate?

$($c$)$ What percentage increase in cost was caused by the $100$ percent demand forecasting error?

What does this tell you about the sensitivity of the EOQ model to errors in the data?