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Question 3 Potatoes can be kept for a long time when stored properly. Your dorm has decided to go in together on a communal store of artisanal potatoes. Because you stop by the kitchen every day to check on these potatoes, you have a continuous review system. Students eat 15 potatoes every day at a constant rate. Every time you place an order for bulk potatoes from the farm, it takes 5 days for delivery and costs 3 dollars (independent of the number of potatoes). Thanks to ordering in bulk, each potato only costs 1 dollar. The annual cost of storing potatoes is 0.25 dollars per potato per year. Assume 300 days per year (potatoes are only made available during the school year). a) What is the economic order quantity? (5 points) 328.63 b) How many times a year do you order potatoes under the EOQ? (1 point) 13.69 times per year c) What is the reorder point in view of the lead time? (1 point) 75 potatoes d) What are the total costs under EOQ? (3 points) $4582.16/yr e) Students start to get tired of artisanal potatoes. Demand now becomes variable. After a few months, you find that the demand is normally distributed with an average demand of 15 potatoes per day, and a standard deviation of 4 . Assuming a service level of 95%, what is the reorder point? What is the safety stock? (5 points) 89.66, 14.67 f) Following from e), what are the total inventory costs? (5 points) $85.82/yr