urchasing manager of You are the Purchasing Manager for the Boeing 737-800. You are responsible for ordering components and parts, specifically the seat for the aircraft. Boeing has an agreement with a new firm, LIFT by Encore, and plans on a combined order of 2,770 seats per month: Coach, Premium and Business Class. The cost of each seat is as follows: Coach= $5,000; Premium = $15,000, and Business Class. = $80,000. Boeing employs a lean manufacturing strategy, so the holding costs are relatively low at 25% of the combined unit cost. The combined ordering cost is $4,500 per order. Boeing recognizes twelve federal holidays and operation on a continuous cycle with multiple shifts. The average daily demand for seats is 300 with a variation in demand of 100 seats. The average lead time for delivery is ten days with a variation of 48 hours. The operating service level for Boeing is 95% with a z-score of 1.65. Assumptions: 1. Boeing produces approximately 10 Dreamliners per month. 2.75% of the seats Boeing orders are Coach; 25% Business; and 5% Premium. a. Calculate annual demand. b. Calculate the Efficient Order Quantity. c. Calculate the order frequency.