QUESTION $1$

$3$ points

A coffee shop buys $350$ bags of their most popular coffee beans each month. The cost of ordering and receiving shipments is $$8\mathrm{.}50$ per erder. Acoounting estimates annual carrying costs are $10$ cents or $$0\mathrm{.}10$ per item per year. The suppliet lead time is $4$ operating days. The shop operates on a $20$ days each month for a total of $240$ days per year. Each order is received from the supplier in a single delivery. There are no quantity discounts. Due to demand uncertsinty the company wishes to carry an extra supply of $10$ bags. Please keep two decimal places in your caleulations.What is the stores minimum total annual cost of placing orders and carrying inventory?