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Demand is 385 pounds annually Beans are purchased for $2.95/lb Costs for placing an order is approx. $28 Holding costs are based on a 14% annual interest rate a) Determine the optimal order quantity. b) What is the time between placement of order? c) What is the average annual cost of holding and setup due to this item? d) If replenishment lead time is three weeks, determine the reorder level based on the on-hand inventory. 4. Coffee Question (part 2) a) If the order costs from Question 3 (above) is actually $19, determine the error made in calculating the annual cost of holding and ordering as a result of using the wrong value of K. (In other words, compare the two values for annual cost.) Note that this implies that the order policy from Q3 is suboptimal.