Problem 2 (14 points) Alimentos Australes is a small importer and distributor of Latin American food products to the south east region of USA. The company commercializes in the US a popular brand of Argentinean cookies. The weekly demand for this brand of cookies is around 1,000 kg. The per kilogram cost for each type of cookie is the roughly the same and approximately 20 dollars per kilogram. The shipment costs are 1200 dollars (assume it is fixed price, independent on the number of kilograms of cookies shipped). The annual inventory cost for the cookies (as a percentage of the product cost) is 35%. Assume that a year has exactly 52 weeks. The delivery lead-time is 1 week. Question 2A (2 points): Use the Economic Order Quantity (E0Q) model to find the number kilograms of cookies that Alimentos Australes should order in order to minimise the total ordering and inventory costs. Question 2B (2 points): State the amount of time elapsed between two consecutive orders if the firm uses the EOQ model. Express your answer in days. Question 2C (2 points): How much money is Alimentos Australes spending in inventory for these cookies if they use the optimal order quantity? Question 2D (3 points): Suppose that the ordering cost is composed of a fixed amount of $1000 plus an extra $20 per 500 kg of cookies ordered (rounded up). Decide whether the optimal order quantity stays the same under this new condition, increases, or decreases. Justify your answer. Question 2E (5 points): Suppose that the demand is no longer deterministic. The weekly demand follows a Uniform Distribution between 900 and 1,100. () Calculate the order quantity. (ii) What should be the reorder point if the company wishes to have a stock-out probability of 1% on each cycle