Number 2 pencils at campus bookstore are sold at a fairly steady rate of 60 per week. The pencils cost the book store 2 cents each and sell for 15cents each. It costs the bookstore $12 to initiate an order, and holding costs are based on an annual interest rate of 25%. a. Determine the optimal order quantity minimizing the annual cost and the optimal order quantity minimizing the weekly cost. Compare and analyze these two order quantities. b. Computes average inventory (I) and average inventory flow time (T). c. The store’s inventory flow time will increase (or decrease) as the annual demand R increases. Explain why?