Note: All data in this problem set are fictitious. An Excel spreadsheet containing data for Problem 2 is available at Canvas. Use two decimal places. Problem 1 Black Moon is one of the top selling beers at Bottom of the Heel, a local restaurant and brewery in Chapel Hill. The manager of Bottom of the Heel asked you to help in determining the optimal ordering policy for Block Moon. The demand for this beer is 35 bottles per day. The store pays a unit cost of $3.50 per bottle and a fixed ordering cost of $130 per order. The annual unit holding cost of inventory is estimated to be 30% of the unit cost. The store operates 280 days a year. a. Determine the Economic Order Quantity (EOC). Compute the time between two orders and the total annual relevant inventory cost (.e., sum of holding and ordering costs) of Black Moon for Bottom of the Heel (pay attention to units). b. Compute the reorder point assuming that the order lead time is 3 workdays. Suppose that the supplier requires orders to be placed in multiples of 100 units. What order quantity would you now suggest to the store to meet the supplier's mandate while minimizing total annual costs? What is the increase in the total annual relevant inventory cost due to this requirement compared to your answer in part (a)