2. [Chapter 12: 23] A local tomato processing plant in Ontario uses (demand) 24,000 glass jars per year to produce tomato sauce. It costs the plant $60 each time it places an order for jars with the suppliers. The inventory holding cost is $0.08 per jar per year. The jars are received 4 working days after an order has been placed. No backorders are allowed. Assume 300 working days a year. a) Calculate the economic order quantity. What is the optimum number of orders per year? What is the optimal interval (in working days) between orders? Calculate the annual holding cost and the annual setup cost. Calculate the total annual inventory cost. b) Using an appropriately labelled diagram, graph setup cost, holding cost, and total inventory cost showing the optimal order quantity and the minimum total inventory cost. c) Calculate demand during the lead time. Using an appropriately labelled diagram, show the maximum inventory, reorder point, and lead time. d) Because of space limitations, suppose the firm orders 5,000 jars at a time. What is the annual holding cost of this policy? What is the annual setup cost of this policy? What would be the annual cost saved by shifting from the 5000 -jars order policy to the EOQ? e) If the average cost per jar is $1.5 and the supplier of jars offers a discount of 5% if the food processor orders a minimum of 8,000 jars at a time, should the processor accept the deal assuming annual demand of 24,000 jars? Would your answer change if the discount is 1%