Stargucks observes random demand for one of its special types of coffee. The demand for the (1 lbs.) packages of “specia

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Stargucks observes random demand for one of its special types ofcoffee. The demand for the (1 lbs.) packages of “special” coffeebeans can be approximated by a Normal random variable with a meanof 40000lbs and standard deviation 2500lbs per week. The supplierof these packages is not close to the Stargucks warehouse, and ittakes 5 days for the supplier to deliver an order. Each time anorder is issued to the supplier Stargucks incurs $250 fixedtransportation cost and an additional $50 for handling thepaperwork. Annual holding cost for each pound of package is 25% andeach pound of package costs $20. Assume that there are 7 days in aweek and 52 weeks in a year. Stargucks use (s,Q) model to manageits special coffee bean inventory and determines the order sizeaccording to EOQ.
a) What is the order quantity for raw materials in lbs?
b) If Stargucks would like to be in stock 95% of all reorderperiods, what would be the inventory level that Stargucks shouldissue an order?
c) Based on your result in part b, what is the level of pipelineinventory? What is the level of safety stock?
d) What is the total annual cost per year in managing thisspecial coffee bean inventory?
Pls answer all, Thank you very much!