$0\mathrm{.}3(10$ points$)$B&B operates $52$ weeks per year, $6$ days per week, and uses a continuous review inventory system. It purchases bags for $$/1\mathrm{.}70$ per bag. The following information is available about these bags:Demand $=90$ bags$/$weekOrder cost $=554/$order$.$Annual holding cost $=27$ percent of costDesired cycle$-$service level $=80$ percentead time $=3$ weeks $(18$ working days$)$indard deviation of weekly demand $=15$ bagsrent on$-$hand inventory is $320$ bags,no open orders or backorders.What is the EOQ? What would be the average time between orders $($in weeks$)?$Vhat should R be$?$a inventory withdrawal of $10$ bags was just made. Is it time to reorder?e store currently uses a lot size of $500$ bags $($i$.$e$.,$ Q $=500).$ What is the annual holding cost oflicy? Annual ordering cost? Without calculating the EOQ, how can you conclude from the: culations that the current lot size is too large?would be the annual cost saved by shifting from the $500-$bag lot size to the FOQ?