Solve each of the following problems either manually or using the Inventory.xlsx file. 1. ECONOMIC ORDER QUANTITY: The Surgery Unit of Piedmont has determined that the annual demand for surgical gloves is 25,000 pairs. It costs $16 every time an order is placed, and with their limited storage space it is estimated that it costs $0.05 to hold one pair of gloves in inventory for a year. Also, assuming 250 working days per year, it takes 10 days for an order to arrive. 1a. What should your order size be if you want to minimize total cost? 1b. How many workdays will there be between orders? 1c. What is the computed reorder point for surgical gloves? 2. PRODUCTION ORDER QUANTITY: Piedmont Hospital decides to go into the glove manufacturing business for themselves, considering their annual demand for surgical gloves is 25,000 pairs. It costs $25 to set up their production equipment and personnel, and 500 pairs can be produced each day. With their limited storage space it is estimated that it costs $0.05 to hold one pair of gloves in inventory for a year. Assume 250 working days per year. 2a. What should your production order size be if you want to minimize total cost? 2b. How many workdays will it take to produce that quantity? 2c. Comparing the results of the POQ here to the EOQ in problem #2, which is the less expensive option for Piedmont? (choose one of the following) A) Ordering gloves B) Producing gloves C) They are equal in cost 3. QUANTITY DISCOUNT: Prentice Hall wants to reduce a large stock of Quantitative Analysis books from their warehouse. The annual demand rate is 400 books, the ordering cost is $20, and the annual holding cost is $3 per textbook. They have offered the JU Bookstore a quantity discount pricing schedule, as follows: QUANTITY PRICE 1- 99 $75 100 - 299 $70 300 + $68 3a. What is the optimal order size? 3b. Was the price discount a factor in the optimal order size? (YES or NO)