""Quarter inch stainless steel bolts one and half inches long are consumed in factory at a fairly steady rate of 60 per week. The bolts cost the...

""Quarter inch stainless steel bolts one and half inches long are consumed in factory at a fairly steady rate of 60 per week. The bolts cost the plant 2 cents each .it costs the plant $12 to initiate an order and holding cost are based on an annual interest rate of 25percenta) determine the optimal number of bolts for the plant to purchase and the time between the placement ordersb) what Is the yearly holding and setup costc) suppose instead of smallbolt we are talking about bulky item like packing material what problem might there be with our analysis?Reconsider the above problem suppose although we have estimated the demand as 60per week it turns out that it is actually 120 per week (ie we have a 100% forecasting error)a) if we use the lot size calculated in the above problem what will the setup plus holding cost be under the true demandb) what would the cost be if we used the optimum lot sizec) what percentage increase in cost was caused by100 percent demand forecasting error?what dose this tell you about the sensitivity EOQ model to errors in the data?