Question: 6. (MT/Aug 2016) Flex Sdn. Bhd. pays RM525 each time an order of raw materials is placed. The cost of holding per year is one-fourth

 6. (MT/Aug 2016) Flex Sdn. Bhd. pays RM525 each time an

6. (MT/Aug 2016) Flex Sdn. Bhd. pays RM525 each time an order of raw materials is placed. The cost of holding per year is one-fourth of cost of the inventory. The normal cost per unit of raw material is RM 100. The demand of raw materials is 90 units per month. (1) Determine the optimal order quantity and total annual inventory cost. (ii) Suppose that there is a bulk discount of 4% for orders larger than 50 units and 12% discount for orders larger than 100 units. Develop a discount table and compute the total cost for each order size

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