Suppose you manage the almond inventory for a local grocery chain. Your holding cost is $1.00 per pound per week. The cost of almond is $5.00 per pound with an order setup cost of $2000. Your demand rate is 1000 pounds per week. (5 pts) a. Using the Economic Order Quantity model, how many pounds of almonds should you order ata time to minimize order setup plus holding costs?

Q* = _____

What is the corresponding optimal interval of time between orders?

T* =

What are the three unrealistic/simplistic assumptions of the EOQ model listed in thenotes?