Example 2 A bakery uses 25,000lbs. of flour per year. The mill charges a delivery cost of 75$ per order. The delivery lead time is 1 week. Due to special storage requirements, it costs the bakery $1000 to store 100lbs. of flour during a year. The bakery orders 1,000lbs. in each order. a. How many lbs. of flour are held in the cycle inventory? b. How many lbs. of flour are held in the pipeline inventory? c. What is the inventory holding cost per year? d. What is the ordering cost per year? e. What is the EOQ? f. What is the TBOEOO (TBO when using the EOQ)