1. Franklin Barbecue (FB) is a BBQ shop that operates in Austin. Arguably serving the best barbecue in the known universe, FB has established a steady demand rate, such that - to fire up their ovens - the company's need of post oak wood per day is normally distributed with mean of 80 pounds and standard deviation of 10 pounds. FB's current supplier sells post oak woods to FB at a price of $1.25 per pound. Moreover, this supplier charges a fixed cost of $100 every time FB places an order for wood and delivery lead time is 1 week. FB's annual holding rate is 20%. Assume there are 50 weeks in a year and 5 days in a week. (a) Calculate the economic order quantity (Q") (e.g., how many pounds of post oak woods should FB order every time it places an order from its supplier?). (2 points) (b) How many times per year does FB need to order? (2 points) (c) If FB wants to make sure the woods do not run out with 98.75% probability during the delivery lead time, what is FB's optimal recorder point? (3 points) (d) Calculate FB's corresponding total annual inventory cost (cost of placing orders & carrying inventory) under the replenishment policy you've proposed in part (a). (3 points) (e) Timber Lumber (TL), an out of state wood manufacturer, knocks FB's door with a request to become FB's wood supplier and state that they can provide post oak woods at a price of $1.25 per pound. However, due to the state regulations on oak wood shipping, TL can only send 2,000 pounds of wood in a single order (i.e., Q-2,000). FB wants to work with a supplier that gives them a lower total annual inventory cost. What is the highest fixed ordering cost TL can set in order for FB to designate them as their supplier (replacing the current one)? (3 points)