Q5.13 new system will require much less labor. What would be the impact of this syster the ordering pattern? [5.6] (Powered by Koffee) Powered by Koffce (PBK) is a new campus coffee store. PBK uses 50 bags of whole bean coffee every month, and you may assume that demand is perfectly Steady throughout the year. PBK has signed a year-long contract to purchase its coffee from a local supplier, Phish Roasters, for a price of $25 per bag and an $85 fixed cost for every delivery independent of the order size. The holding cost due to storage is $1 per bag per month. PBK managers figure their cost of capital is approximately 2 percent per month. a. What is the optimal order size, in bags? [5.01 b. Given your answer in (a), how many times a yes: does PBK place orders? (5.6] c. Given your answer in (a), how many months of supply of coffee does PBK have on average? [5,6] d. On average, how many dollars per month does PBK spend to hold coffee (including cost of capital)? 15.6) Suppose that a South American import/export company has offered PBK a deal for the next year. PBK can buy a year's worth of coffee directly from South America for $20 per bag and a fixed cost for delivery of $500. Assume the estimated cost for inspection and storage is $1 per bag per month and the cost of capital is approximately 2 percent per month Should PBK order from Phish Roasters or the South American import/export con- pany? Quantitatively justify your answer. [5.6]