1. You have recently been hired as an expert consultant in the operations area of the famous POM Analytics consulting firm. Your first task is to implement a continuous review system for the inventory of the most popular product at the RPI Store (the RPI souvenir shop, which opens 200 days a year): the coffee cup. The annual demand for this product is 10,000 units and the production cost of a cup for the RPI Store is $100. The yearly holding cost represents 20% of the product cost and the order cost is $1440. a. (0.25 pts) Using the EOQ model, determine the order size that minimizes cup inventory costs for the RPI Store. b. (0.25 pts) Assuming a lead time of 9 days, compute the reorder point. c. (0.25 pts) The store supplier has informed you that due to supply chain problems the lead time will be increased. What is the maximum lead time that RPI Store can accept so it can still satisfy the demand and maintain the order size that minimizes its inventory costs? d. (0.25 pts) We now assume a Normal distribution for the daily demand with mean 50 and standard deviation 5, and a constant