question 3 only

Part I: Multiple Choice (MC) Questions (36 marks) Removed. Part II: Answer Questions (AQ) AQ1. Inventory Management (18 marks) Redspot Caf uses 180 pounds of coffee bean each month. The manager replenishes the inventory of coffee bean using an EOQ value, and the ordering cost is $270 per order. 1. [3 marks] If the manager places on average 5.4 orders each year from the coffee bean supplier, what is the EOQ value used by the manager? 2. [4 marks) If the EOQ value is 360 pounds, and the unit holding cost is 30% of the purchase price, what is the purchase price charged by the supplier? 3. [6 marks) Suppose the holding cost is a fixed amount of $8/pound/year, the ordering cost is $240 per order, and the original price charged by the coffee bean supplier is $32/pound. The supplier plans to offer the manager a discount if the caf purchases the coffee bean at least 800 pounds each time. What is the minimum discount rate (in %) that the supplier can set so that the manager would be willing to accept the offer