Question 3 Inventory Models A Caf needs to determine the order quantity and the reorder point for the coffee beans it uses for its coffee. The data for the coffee beans are as follows: Fixed cost to place an order $25 Holding cost 20% of product cost per year Cost of 1KG of coffee beans $3.60 Monthly demand (KG) 50 Lead time 1 weeks Standard deviation for monthly 15 demand (KG) Assume there are 4 weeks in a month. (a) What is the economic order quantity (EOQ)? (b) What is the reorder point to achieve a 99% service level? a