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Joe Birra needs to purchasemalt for his micro-brew production. His supplier charges $40 perdelivery (no matter how much is delivered) and $1.25 per gallon.Joe’s annual holding cost is 30% of the price per gallon. Joe uses200 gallons of malt per week. a. Suppose Joe orders 125 gallonseach time. What is his average inventory? gallons (Roundyour answer to 2 decimal places.) b. SupposeJoe orders 1000 gallons each time. How many orders does he placewith his supplier each year? orders c. How manygallons should Joe order from his supplier with each order tominimize the sum of ordering and holding costs? gallons (Roundyour answer to 3 decimal places.) d. Suppose Joe orders 3000 gallonseach time he places an order with the supplier. What is the sum ofordering and holding costs per gallon? per gallon (Roundyour answer to 2 decimal places.) e. SupposeJoe orders the quantity from part (c) that minimizes the sum of theordering and holding costs each time he places an order with thesupplier. What is the annual cost of the EOQ expressed as apercentage of the annual purchase cost? % f. If Joe’ssupplier only accepts orders that are an integer multiple of 1,000gallons, how much should Joe order to minimize ordering and holdingcosts per gallon? gallons g. Joe’s supplier offers a 3.00% discount ifJoe is willing to purchase 8000 gallons or more. What would Joe’stotal annual cost (purchasing, ordering and holding) be if he wereto take advantage of the discount?