Problem set I Order cost is $50 for material that costs $12.50 per pound. The annual holding cost rate is estimated at 18% of material cost and monthly requirements are fairly stable at 50,000 pounds. Orders must be in whole pounds

b)Answer requirement 2: Case 2: Backorders are allowed. Compute the economic order quantity and compute the optimal backorder quantity given the cost data above and considering that the monthly backorder cost per pound is estimated at $0.80 (i.e., cs = $0.80/lb per month)