1) A trucking company maintains an inventory of trucks that varies monthly. The ending inventory levels of trucks during the first 8 months of the year (January to August) were 26, 38, 31, 22, 13, 9, 16, 5, respectively. The monthly inventory holding cost is proportional to the monthly ending inventory. Trucks incur the following costs . Each truck costs the company $8,000. Interest rate on the cost of capital is 20% per annum (annually). Each truck incurs a storage cost of 3% per annum of the truck cost. Each truck incurs a liability insurance cost of 2% per annum of the truck cost. The carrying cost is the total of all costs (capital, storage and insurance.) Answer the following questions: 1.1) (5 points) What is the monthly carrying cost per truck? 1.2) (10 points) What is the total carrying cost incurred by the company over the 8 months (January to August)? 1.3) (10 points) What is the total annual carrying cost? 2) A coffee store is experiencing sales of 280 pounds of coffee beans per year. The supplier charges the store $2.40 per pound, and the paperwork and labor costs incurred by the store in placing an order total $45 per order. Holding costs are based on 20% interest rate per annum. Use 52 weeks per year. Answer the following questions: 2.1) (10 points) What is the optimal order size (write down the model name, its parameters and formula)? 2.2) (5 points) What is the time between order placements (include the formula)? 2.3) (5 points) What is the time-averaged annual holding cost (include the formula)? 2.4) (10 points) If the lead time is 3 weeks, what is the reorder point (include the formula)?