Question $2(3+2+2+2+6=15$ points$)($Lead time, Reorder Point, Quantity Discounts$)$

You work at an appliance store and realize that the demand is stable and EOQ assumptions are satisfied. You further collect the following data for the bestselling washer:

$$ Average annual sales $=7200$ units $$

$$ Ordering cost $=$ $$30$ per order $$

$$ Carrying cost $=20\%$ of the item cost per year $$

$$ Item cost $=$ $$150$ per unit $$

$$ Lead time $=5$ days $$

$$ Working days per year $=250$

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a$)$ After noticing that the store$$s current inventory policy is suboptimal, you want to impress your manager by making a proposal for improvement. What is the optimal order policy for this washer $($write in the format of $[$R$,$Q$*])?$

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b$)$ What is the total ordering cost under the optimal order policy?

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c$)$ What is the total holding cost under the optimal order policy?

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d$)$ Consider your answers in part b and c$.$ Which one of the following is correct $($circle one$)?$ Explain why?

$$ Total ordering cost$=$total holding cost

$$ Total ordering cost$>$total holding cost

$$ Total ordering cost