5. Suppose that the demand is D units per unit time with instantaneous replenishment, and shortage is allowed with a shortage cost of $p per unit inventory per unit time. Let $K be the setup cost per order and $h be the holding cost per unit inventory per unit time. Show that the economic order quantity in this case is 3* 2KD p+h = h p To present your arguments, you should do the following three things: draw a graph to illustrate the underlying inventory model; label the coordinates of the peak/trough (no explanation needed) and the cycle length; derive the expression for TCU and then the EOQ formula