ABC Company products and commercializes olive oil. The manager forecasts that its production process will require 12, 250 tons of olives over its planning period. Ordering costs amount to an average of $10 per order while the holding cost per unit is estimated at $2. A production run that encompasses 360 working days is considered. The delivery time is five days. 1) What are the EOQ and the optimal number of orders? Interpret. (2 points) 2) What is the reorder point? Interpret. (2 points) 3) What is the expected time between two orders? Interpret. (2 points) 4) ABC Company was recently approached by its supplier with a new quantity discount program. The supplier offered the following quantity discounts. Quantity (Q) Cost per Unit (C) 0-999 units $ 0.70 0.65 1.000-1.599 units 1,600- 1,999 units 0.60 2.000-2,599 units 0.55 2,600+ units 0.50 4) ABC Company was recently approached by its supplier with a new quantity discount program. The supplier offered the following quantity discounts. Quantity (0) Cost per Unit (C") 0-999 units $0.70 1,000-1,599 units 0.65 11,600-1,999 units 0.60 2,000-2,599 units 0.55 2,600+ units 0.50 Calculate the total inventory cost for the below range of order quantity. Interpret (3 points) Quantity (0) Total inventory costs Order costs Holding costs Purchase costs 300 350 1,500 1,800 2,000 2.500 2,700 3,000