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Table 5.8 Silver-Meal solution summary Month Order quantity Ordering cost Holding cost Inventory cost January 36 580 $31.50 $111.50 February 60 580 S52.50 $132.50 March 96 S80 $103.25 $183.25 April May 39 $80 $34.13 $114.13 June 75 $80 $65.62 $145.62 Total inventory cost (TIC) $400 $287.00 5687.00 h29 Type of cost Description Ordering cost Since an order is placed, we incur an ordering cost of $80. Holding cost Since we receive the ordered quantity of 75 units in full at the beginning of June, the inventory level at the beginning of June would be 75 units. The inventory level at the end of June would 0 units. So, the average inventory level in June would be 75+ 2 =375 units The total holding cost for the month of June would, therefore, be =(37.5)