2. The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The following discount price schedule is provided by the office supply company: Order Quantity (in boxes) Price per Box 200999 $16 MOO2,999 14 3,000L5,999 13 6,(I)0+ 12 3. Determine the optimal order quantity and the total annual inventory cost. {5 points) b. Determine the optimal order quantity and total annual inventory cost for boxes of stationeg if the carrying cost is 20% of the price of a box of stationery. {5 points) 3. The concession stand at the Blacksburg High School stadium sells slices of pizza during soccer games. Concession stand sales are a primary source of revenue for high school athletic programs, so the athletic director wants to sell as much food as possible. However, any pizza not sold is given away to the players, coaches, and referees, or it is thrown away. The athletic director wants to determine a reorder point that will meet, not exceed, the demand for pizza. Pizza sales are normally distributed, with a mean of 5 pizzas per hour and a standard deviation of 2.5 pizzas. The pizzas are ordered from Pizza Town restaurant, and the mean delivery time is 30 minutes, with a standard deviation of 8 minutes. Currently, the concession stand places an order when it has 1 pizza left. a. What level of service does this result in? [5 points)