Sarah’s Organic Soap Company makes organic liquid soap. One ofthe raw materials for her soaps is organic palm oil. She needs1,000 kgs of palm oil per day on average. The supplier charges a$60 delivery fee per order (which is independent of the order size)and $4.75 per kg. Sarah’s annual holding cost is 25%. Assume sheoperates and sells 5 days per week, 52 weeks per year. a. If Sarahwants to minimize her annual ordering and inventory holding costs,how much palm oil should she purchase with each order (in kgs)? kgsb. If Sarah orders 4,000 kgs with each order, what would be
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