Question 5 A soft drink distributor wants to reduce its inventory cost and has determined its annual demand is 540,000 soft drinks from customers. The cost of processing each order is $18,000 and the holding cost on each soft drink is $2.50. (a) What is the most economical order quantity for the distributor? (6 marks) (b) How many approximate orders should there be each year (round to nearest whole number)? (2 marks) (c) What is the annual cost of the inventory? (4 marks) (d) If the supplier is giving the company a 1.5% discount on its sale price of $40 each if the distributor makes only 2 orders each year, should the distributor accept the offer? Note the holding cost would also decline by 1.5%. (8 marks)