Question 3 A plumbing corporation distributes a portable sauna from Switzerland. A sauna costs the company 2400 and has an annual holding cost of 525 per unit. Due to high cost of transportation the fixed ordering cost is 1250. Demand has been stable at 15 saunas per week. The lead time is 4 weeks. Moreover, the plumbing corporation has estimated backorder costs. The company estimates a 25 goodwill cost for each week a customer who orders a sauna must wait for delivery and an administrative backorder cost of 10. (i) Compute the optimal order quantity. [4 marks] (ii) Compute the optimal number of backorders. [4 marks] (iii) Compute the reorder point. [4 marks] (iv) Compute the cycle time in years. (4 marks] (v) Compute the number of cycles per year. [4 marks]