an automotive warehouse stocks a variety of parts that are sold at neighborhood stores. one particular part, a popular brand of oil filter, is purchased by the warehouse for $1.50 each. it is estimated that the cost of order processing and receipt is $100 per order. the company uses an inventory carrying charge based on a 28 percent annual interest rate. the monthly demand for the filter follows a normal distribution with mean 280 and standard deviation 77. order lead time is assumed to be five months. assume that if a filter is demanded when the warehouse is out of stock, then the demandisbackorderedandthecostassessedforeachbackordereddemandis1 f(r0) q0hp(11)(50)(25)(20) 1.1, 7856 ch05.qxd 1/9/08 11:42 am page 279