Question: Moving to another question will save this response. Question 4 of 8 Question 4 12 points Save Awe Copy of A popular cafe sells reusable

Moving to another question will save this response. Question 4 of 8 Question 4 12 points Save Awe Copy of A popular cafe sells reusable coffee cups. The cost of placing one order with the supplier for the coffee cups is 17.00 and the cost of storage is 2.50 per cup per year. From historical data, the cafe knows that the annual demand for the coffee cups will be 8000 cups. Parta) Calculate the Economic Order Quantity for the coffee cups 13 marks] Part b) The supplier offers a discount based on the order size. Use the supplier price list (shown in the table below) to determine if it is better for the cafe to use the EOQ or to use a larger quantity and get a discount on the price. Calculate the total cost to the cafe. Table: Supplier Prices Order Size Unit cost of coffee cup 1100-999 7.20 E7.15 1000 or more 15 marks] Part ) Briefly explain the meaning of the term buffer stock and why a company may choose to keep a buffer stock. 14 martesi TTI T. . MacBook Pro ril 2 delete

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