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$12\mathrm{.}5$

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Problem $12-7($Algo$)$

A manager receives a forecast for next year. Demand is projected to be $540$ units for the first half of the year and $948$ units for the second half. The monthly holding cost is $$2$ per unit, and it costs an estimated $$55$ to process an order.

a$.$ Assuming that monthly demand will be level during each of the six$-$month periods covered by the forecast $($e$.$g$.,90$ per month for each of the first six months$),$ determine an order size that will minimize the sum of ordering and carrying costs for each of the six$-$month periods.