Question: Problem 1 - Points (40) A specialty coffee house sells Colombian coffee at a steady rate of 7,000 pounds annually. The beans are purchased from

Problem 1 - Points (40) A specialty coffee house sells Colombian coffee at a steady rate of 7,000 pounds annually. The beans are purchased from a local supplier for $2.60 per pound. The coffee house estimates that it costs them $70 in paperwork and labor to place an order for the coffee. Holding costs are based on a 28% annual rate. (Show your calculations for all questions): a. Determine the optimal order quantity for coffee. b. What is the time between placement of orders? c. What is the average annual inventory holding cost? d. What is the average annual ordering cost?

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