E-buy, a popular consumer electronics store in Lawrence, follows a base stock policy for its best selling vacuum cleaner. The weekly demand for this brand of vacuum cleaners is normally distributed with a mean of 10, and a standard deviation of 4. The manufacturer of this vacuum cleaner takes 4 weeks to replenish an order from E-buy. E-buy estimates that the holding cost for the vacuum cleaner is $15/unit/week, while the backorder cost is $10/unit/week.

1. How much flour (in lbs) should the bakery purchase in each order to minimize the total ordering and holding cost in a year? If your answer is not an integer, provide at least three decimal places, e.g., 7.500.

2. If the bakery orders the amount you calculated in Question 1, how many orders should they place in a year? If your answer is not an integer, provide at least three decimal places, e.g., 7.500.

3. If the bakery orders the amount you calculated in Question 1, what is the total yearly ordering and inventory holding cost?If your answer is not an integer, provide at least three decimal places, e.g., 7.500.

4. The supplier is running a special offer: if the bakery purchases 1000 lbs in an order, they get $10 cashback. What is the bakery's NET yearly ordering and inventory holding cost if they avail this offer?If your answer is not an integer, provide at least three decimal places, e.g., 7.500.

Hint: You need to calculate the total yearly ordering and inventory holding cost and the number of orders placed in a year under this new order quantity. The NET cost = the total cost - total cashback received in a year