. Super Cereal Company purchases various grains (e.g. wheat and corn) that it processes into ready-to-eat cereals. Its annual demand for wheat is 300,000 bushels. Assume that the demand is uniform throughout the year. The average price of wheat is $5.75 per bushel (delivered). Annual inventory costs are 18 percent of inventory value. The costs of placing and receiving an order are $80. Assume that inventory replenishment occurs virtually instantaneously. Determine the following:

1. Economic order quantity (3 points).

1. Total annual inventory costs of this policy (3 points).

1. Optimal ordering frequency (3 points).

1. If the Economic Order Quantity and the Optimal ordering frequency are not accurately determined, what are the consequences of not hitting the required targets? (3 points).