Question: Question 5: David's Tea (11 points) David's Tea, a popular tea company faces a demand of 50 packs of organic chai and mighty tea every

Question 5: David's Tea (11 points) David's Tea,

Question 5: David's Tea (11 points) David's Tea, a popular tea company faces a demand of 50 packs of organic chai and mighty tea every three months. They order chai tea for their factory from a supplier in Assam, India. The annual holding cost for a pack of tea in their warehouse is $190, and the supplier charges a fixed ordering cost of $2500 irrespective of the number of packs ordered. a. What is the optimal order size (number of packs) that David's Tea orders from their Indian supplier? (4 points) 3 OUT OF 5 b. What is the time between two successive orders and how many orders does David's tea place in one year? (4 points) c. How long, on average, does a pack of chai tea spend in the warehouse of David's tea? (3 points)

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