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can you explain this question clearly? Problem 13-7 A manager receives a forecast for next year. Demand is projected to be 480 units for the

can you explain this question clearly?

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Problem 13-7 A manager receives a forecast for next year. Demand is projected to be 480 units for the rst half of the year and 996 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. a. Assuming that monthly demand will be level during each of the sixmonth periods covered by the forecast {e_g., 80 per month for each of the rst six months), determine an order size that will minimize the sum of ordering and carrying costs for each of the six month periods. {Round your answers to the nearest whole nurnberJ Period Order Size 1 6 months units 7 12 months units b. If the vendor is willing to offer a discount of $10 per orderfor ordering in multiples of 50 units [e.g., 50, 100.150], would you advise the manager to take advantage of the offer in either period? It so, what order size would you recommend? [Round intermediate calculations to 2 decimal places} Period Order Size 1 6 months units T 12 months units

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