1002: SECTION B (40 MARKS) There are THREE (3) questions in this section. Answer ALL questions. 1. Amrah Hani has been appointed as Purchasing Executive of IT Solution Sdn. Bhd. She has been given a task to propose the inventory system for pen drives. This pen drives has an annual demand of 12,900 units. IT Solution Sdn. Bhd. operates 47 weeks in a year. In order to avoid any shortage of pen drives, IT Solutions holds a safety stock of 1 week demand. IT Solutions Sdn. Bhd. purchases pen drives from supplier at RM15 per unit. The ordering cost is RM210 and the carrying cost per week is RM5.50. The purchase order lead time is three weeks. a) Determine the economic order quantity and the reorder point for this pen drives. (2 Marks) b) Calculate the annual inventory cost. (2 Marks) c) Determine the reorder cycle for the pen drives. (2 Marks) d) Propose to IT Solutions Sdn. Bhd. the minimum and maximum inventory level of pen drives. Explain the reasons for both levels. (4 Marks) [Total: 10 Marks] AB |