2 L Moving to another question will save this response. Question 1 of 2 Question 1 10 points Save Answer Aus Safety Company manufactures a product used in the Telecom Industry. Allen Dakin, the company's purchasing manager, is currently revising the inventory ordering policy for RIOZ, one of the chemicals used in the production process. The chemical is purchased in 10-kilogram case for $81 each and the firm uses 8 640 cases per year. The accountant of the company has shared the following details with Allen: Estimated Incremental costs of ordering and receiving R102 are $190 per order The annual cost of storing RJO2 is $6 per case currently, the order size is 320 units The lead time required to receive an order of R102 is one month. Required: 1. What is the total annual cost of ordering and storing RJO2 under the current policy? (1 mark) 2. Use the EOQ formula to determine the optimal order quantity for RJOZ. (0.5 marks) 3. How many orders will be placed per year based on the EOQ? (0.5 marks) 4. If Allen decides to order as per EOQ, how much the company will save in inventory cost per year? Support your answer with calculations. (2 marks) 5. Assuming stable usage of R102 each month, determine the reorder point for RJOZ (O.S marks) 6. Suppose that monthly usage of RJO2 fluctuates between 600 and 800 cases, although annual demand remains constant at 8 640 cases. What level of safety stock should the materials and parts keep on hand for RJO27 What is the new reorder point for the chemical? (1.5 marks) 7. Suppose Allen wants to introduce a contemporary inventory policy - Justin Time. What are the steps Allen must take to implement the new policy? Explain what obstacles Allen may face during the transition period and how to manage these obstacles? (4 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) B IVParagraph Arial 14px PE EM A 2 T: === v V P O WORDS POWERED BY TINY