T4 12:52 10 8 47% + : Problem 1 (11 points): A Specialty coffechouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from a local supplier for $2.40 per pound. The coffeehouse estimates that it costs $45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20 percent annual interest rate. a) (1 point) Determine the optimal order quantity for Colombian coffee. b) (1 point) What is the time between placement of orders? c) (2 points) What is the average annual holding cost? What is the average annual setup cost? T4 12:52 10 8 47% + d) (2 points) If replenishment lead time is three weeks, determine the reorder level based on the on-hand inventory. e) (1 point) Draw a graph of the amount of inventory levels for the case when the lead time is three weeks. T4 12:52 10 8 47% + 1) (2 points) Suppose the cost for paperwork and labor increases to $60 per order, what is the optimal order quantity now? Compare the quantity to the quantity you get from part a), what is the reason behind the difference of two quantities? g) (2 points) Suppose the annual interest rate increases to 30 percent, what is the optimal order quantity now? Compare the quantity to the quantity you get from part a), what is the reason behind the difference of two quantities