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3 Answer questions 3 to 7 based on the following problem Medro & Mariana were trying to set up an inventory system for the coffee beans th They came up with the following information: Annual demand 15000 bags Holding cost = 25 KD per bag per year Ordering Cost = 75 KD per order Number of working days per year = 300 days Lead time = 2 days Current order quantity = 600 bags/order What is the economic order quantity (EOQ) for the bags of coffee beans ? (5 Points) a. 100 bags/order b. 200 bags/order c. 300 bags/order O d. 400 bags/order e. None of the above 6 What is the number of working days between orders using the EOQ value? (5 Points) a. 6 days O b. 8 days O c. 10 days d. 50 days O e. 300 days 7 How much can Medro & Mariana save in their total annual inventory cost by using an order size equal to the EOQ instead of continuing to use the current order quantity of 600 bags? (5 Points) a. 1250 KD/yr b. 1562.5 KD/yr c. 1875 KD/yr d. 3125 KD/yr e. None of the above 8 One day Medro and Mariana's friend was eating a sandwich. He really liked the mustard Jss they use in the sandwich. Medro told him that the supplier they buy the mustard from only offers discounts, and as a result, we we really don't know how much to order. Their friend said: "just use the basic EOQ model." (6 Points) a. their friend knows what he is talking about b. their friend does not know what he is talking about 9 Medro & Mariana use wood instead of gas to operate their ovens. The wood they store is considered to be what kind of inventory? (6 Points) a. distribution inventory b. API C. MROS d. work-in-process e. components