Lunas is a convenient store that purchases water from a bottling company in Ocho Rios. Lunas is opened every day except Easter Monday and Christmas Day. The demand for water is 200 bottles per day. Each bottle of water cost $100. The annual holding cost rate is 14%. Lunas ordering cost is $3,500. The lead time for the delivery is 4 days on each order. a) How many bottles of water do you recommend that Lunas order every time it places an order. EOQ 2*D*CO/Ch EOQ= 2*3500*72600/14)=6025 bottles 4 Marks b) Determine the estimated holding cost; and ordering cost Holding cost 14% of $100 = $14 4 Marks Ordering Cost $3,500 c) How much time will elapse between each order 4 Marks d) How many orders will be placed each year 3 Marks e) Determine the re-order point 3 Marks f) Advise Lunas on what will be their Total Annual Cost 2 Marks