Problem 3. [20 points] Using variable lead time L(Q)=aQ with a constant a, and assuming w denotes the unit WIP cost per year per end-product: a) Reformulate the annual cost function and the optimal order quantity (Q*) of the EOQ model. b) Formulate the corresponding periodic cost function, i.e., cost per each interval (T*). c) Briefly describe the meaning of WIP term in the annual cost function based on the relationships between the parameters and the variables. Problem 3. [20 points] Using variable lead time L(Q)=aQ with a constant a, and assuming w denotes the unit WIP cost per year per end-product: a) Reformulate the annual cost function and the optimal order quantity (Q*) of the EOQ model. b) Formulate the corresponding periodic cost function, i.e., cost per each interval (T*). c) Briefly describe the meaning of WIP term in the annual cost function based on the relationships between the parameters and the variables