5. Problem 1 (Economic Reorder Quantity) In a hardware store, the independent demand for certain commonly used bolts is 300 units per month. The ordering cost is $25 per order placed. The maintenance cost is 35% per year and each unit has a cost of .70 dollars.

a) Based on the economic order quantity, what lot size should this product have? b) How often should this product be purchased? c) A quality team found a way to reduce the ordering cost to $15. How will that change the lot size and frequency of purchases for this product?