Exercises Exercise 1 (5 points) Joana is the manager of Fast Deliver, based in the city of Porto. The company seeks to gain a competitive advantage by providing quality customer service, which includes fast and reliable deliveries. To achieve this degree of customer service, the company stores a large volume of items daily in a central warehouse and in three retail stores in the city and suburbs. To maintain these inventory levels, Joana needs to borrow money daily from Banco Velho. Based on her forecast study, she estimates that for the next fiscal year it will require 23,000 euros per day for 305 business days. To benefit from an annual interest rate of 7.5% (charged by the Bank), all money she borrows during the year must be repaid with interest by the end of the year. Whenever Joana makes a loan, the bank charges the company a fixed loan fee of 1.375 euros plus 2.25% of the loaned value. From her Management course, Joana knows the EOQ (Economic Order Quantity) analysis to determine the optimal amount of inventory and wants to apply the same analysis to determine the optimal lending policy. a) Determine the amount of the loan Joana must borrow from Banco Velho, the total annual cost of the company's lending policy, and the number of loans that the company must obtain during the fiscal year. Justify your results. Justify the main steps. (2 points; reference time 15 min.) b) Determine the level of available money for which the company must apply for a new loan since it takes 17 days for a loan to be processed by the bank. Suppose the bank offers Joana a discount as follows: in any loan amount equal to or greater than 700,000, the bank will reduce the number of points charged at the loan's origin rate from 2.25% to 2.00%. What would be the ideal amount for the company to borrow? Justify your results. (1.5 points; reference time 10 min.) c) Explain what strategy (s) Joana can apply to reduce the need for bank loans. (1.5 points; reference time 10 min.)