Q Scenario 1: I-Scream ParlorDaily demand for ice cream at the I-Scream parlor has a mean of 220 quarts per day. The owner has the ice cream supplied by a wholesaler who charges $5 per quart. The wholesaler charges a $50 delivery charge independent of order size. The opportunity cost of capital to I-Scream is estimated to be 20% per year, and the additional storage cost of keeping the ice cream frozen and in stock is another 5% per year. Assume 360 days in a year. What is the optimal order size for quarts of ice cream? Scenario 2: Parts-R-Us Parts-Are-Us is an auto parts supplier launched in 2015. Annual sales have increased by a factor of 10 over the last 5 years. After reviewing inventory levels, the president of the company finds that system wide inventories have increased by a factor of 5 over that period. The president views this as a signal that the company has been managing its inventories well. Assume that the company uses an Economic Order Quantity model to place orders and has no lead time or safety stock. Also assume that the setup cost and holding cost have not changed over this period – in other words, all that has changed is demand.