Question: 5) 16 pts.] Average demand for an item is 1.4 units a weck. The item costs the store S50.00 and the holding cost is based

5) 16 pts.] Average demand for an item is 1.4 units a weck. The item costs the store S50.00 and the holding cost is based on 20% annual interest. Store manager estimates a shortage cost of $12.50 a unit when the item is out of stock. Ordering cost is S20 per order. The lead time is two weeks, and demand over the lead time is accurately described by a Poisson distribution (with mean, H 2(1.4) 2.8 units). Calculate optimal values for the order level and the order quantity

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