Chico's Chili (CC) is well known for making the best chili in Chicago Chico makes a variety of different types of chill and customers can combine it together with any sides they like. Chico's chili is so popular that it uses about 95 kg of ground beef per day and he is open 355 days per year. Until now, Chico has been ordering beef twice per week (50 weeks/year) but has just learned about something called the EOQ that should save some money. The lead time to place an order is 2 days Chico has determined that it takes a hour to place an order and he figures his hourly rate is $45. Chico has also determined that inventory spoilage is 3% and his interest rate on debt is 7% Chico pays $8.00 per kg for his ground beef. Show your work: one number answers or answers which do not show the thought process sufficiently will not be graded favourably. 1. How many kgs of ground beef does Chico use annually? (1 mark) 2. What is Chico's cost of placing an order? (1 mark) 3. What is Chico's holding cost per kg of beef? (1 mark) 4. Calculate the economic order quantity (EOQ). (2 marks) 5. Using the EOQ. how many orders must Chico place? (1 mark) 6. Using the EOQ, what is the average inventory on hand? (1 mark) 7. Using the EOQ, what is the total annual cost of holding and ordering inventory? (2 marks) 8. What is the reorder point? (1 mark)