2. You are a supply chain specialist for Froger, a grocery retailer. Its average weekly demand for potatoes is 30,000 bags, with a standard deviation of 5,000 pounds. A bag contains 10 pounds of potatoes that you buy from a farmer at a cost of 20 cents per pound. Your inventory carrying cost that includes cost of capital, storage, spoilage, etc., is 1% per month. Your cost of replenishment including transportation, labor, etc. is $400 and your supplier delivers a truckload of 60,000 bags per delivery. Your supplier takes 6 days to deliver a truckload of potatoes after you place an order. Determine the following: a. Your order-size. (3) b. Time between orders and \# of replacements. (7) c. Safety stock and reorder point if you maintain a customer service level of 94 percent. (10) d. Annual inventory holding cost including cost of safety stock. (7) e. Annual replenishment cost (3) f. After computing ( d& e) above, you realize that your policy of getting replenishments of a truckload of 60,000 bags makes your inventory related costs very high. Your boss asks you to utilize your knowledge of inventory management and that reminds you of the concept of optimal order quantity you learnt in your course. If you follow an optimal order quantity policy, compute the following: i. Your order/replenishment size. (5) ii. Annual inventory holding cost and replenishment costs. (10) iii. Annual savings by following your optimal order size policy