• 3. The manager at a local university bookstore wishes to apply the EOQ model to determine the respective order quantities for two products: ballpoint pens mechanical pencils. The annual demand for pens and pencils is 1500 and 400, respectively. The orderingcost for each product is $20 per order and the wholesale price of a pen and pencil is $1.50 and $4, respectively. Assume the bookstores annual holding rate is 10% and that the bookstore operates 240 days per year.a. Determine the optimal order quantity the order cycle time for each product. What is the total cost (summed over both products)?b. The bookstore orders the pens and pencils form the same supplier. If these two products had the same cycle time. How much money does the bookstore save by consolidating the orders for these two products?