Note: All data in this homework set is fictitious. Problem 1 A local bookstore selling textbooks and stationary items. The demand for spiral-binded notebooks at the store is constant at 5000 notebooks/year. It purchases the notebooks from a supplier at $1.50 per notebook. Each time the bookstores places an order it incurs an ordering cost of $50. The company estimates that the yearly holding cost of inventory is 18% of the unit purchasing cost. The Bookstore needs your help in determining the optimal ordering policy. a. Determine the Economic Order Quantity, the time between placement of orders and the total annual cost (sum of holding and ordering costs) incurred by the bookstore. b. Determine the reorder point assuming the order lead time is 5 workdays and the bookstore operates 250 days a year. c. Suppose that the supplier is a wholesale seller and requires orders to be placed only in multiples of 500 notebooks. What will be the order quantity to meet this requirement? How much additional total annual cost would the bookstores incur