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2. Consider a retailer that sells a single type of good and all assumption of the basic economic order quantity model are valid. The retailer purchases each unit at $25 and the annual demand is 5000 units. Each order release to the supplier incurs a fixed $50 cost and the annual carrying rate is 32%. The store manager has already determined the optimal order quantity for this item, hence, currently adapts the optimal inventory policy. (a) (10p) If we choose to use an order quantity of q=350 units, what would be the percentage of increase in the total of ordering and carrying costs, i.e. the dependent cost component? (b) (20p) If the store manager can tolerate only a 2% increase from the optimal total of ordering and carrying costs, determine an interval for order quantities that satisfy this tolerance