3. (EOQ) Kims bakery makes biscuits. The bakery needs 50 kg of flour per day, on average. The supplier charges a $3 per kg and a $30 delivery fee per order (which is independent of the order size) and Kims annual holding cost percentage is 15%. Assume the bakery operates and sells five days per week, 52 weeks per year.

a) If Kims bakery wants to minimize its annual ordering and inventory holding costs, how much flour should it purchase with each order (in kg)?

b) It is offered a 5 percent discount if Kims bakery purchases 500 kg of flour at a time. If Kims bakery wants to purchase 500 kg per order, what would be its annual sum of the ordering and holding costs?