Question: 7 . A manager receives a forecast for next year. Demand is projected to be 6 0 0 units for the first half of the

7. A manager receives a forecast for next year. Demand is projected to be 600 units for the first half
of the year and 900 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. b. why is it important to be able to assume that demand will be level during each six-month period. c. If the vendor is willing to be offer a discount of $10 per order for ordering in multiplies of 50 units, would you advise the manager to take advantage of the offer in either period?

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