costs are approximately $$15$ per order, regardless of the order size. The annual holding cost rate is $20\%.$

$Q^{**}=,x$

$TC=$$$,$

places.$)$

$Q^{**}=1$

$TC=$$

$($Round your answer to two decimal places.$)$ days

$($d$)$ Would you recommend a no$-$backorder or a backorder inventory policy for this product? Explain.

Yes, the maximum wait is over a week long, but the cost savings of the backorder case is large enough to justlfy a long walt.

Yes, the maximum wait is less than a week and the backorder case has a lower cost than the EOQ case.

No$,$ the maximum wait is over a week long and the EOQ case has a lower cost than the backorder case.

No$,$ the maximum walt is less than a week but the EOQ case has a lower cost than the backorder case,

No$,$ the maximum wait is over a week long, which does not justify the cost savings of the backorder case.