Question: Over the last 5 months, the unit or case demand for a certain product is: 72, 75, 68, 73, and 65. The typical lead time

Over the last 5 months, the unit or case demand for a certain product is: 72, 75, 68, 73, and 65. The typical lead time is 3 weeks from when an order is placed. The cost to place an order with the supplier is $14 and the holding cost at the warehouse is $1.8 per unit per month.

a) What is the economic order quantity that minimizes total relevant cost?

b) Using the optimal value from part a, what is the total relevant cost?

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