Task 2: One of the main reasons for complaint type Delivery was found to be with the insufficient inventory on hand to fulfill customer request on time. To solve this issue, the DC manager tried to improve warehouse inventory policies for the product with highest demand. The forecast for this product is 500 units for the year. The holding cost was estimated to be $2.5 per unit per month and the ordering cost was $65 per order. By taking appropriate assumptions, determine an order size that will minimize the inventory costs for each of the six-month period. Which inventory models will be appropriate if demand varies substantially in a year. Page 2 of 4