a) ABC Ltd forecasts that the demand for next year will be 4000 units and the ordering costs will be $100 per order while the annual cost of storage is $0.70 per unit. Calculate and Interpret each of the following. (i) The economic order quantity (EOQ). (ii) The number of orders to be made for the year. (iii) The annual ordering cost (iv) The average inventory level for the optimum order quantity. (v) The annual cost of storage for the optimum level of inventory b) T \& G Beverage is a distributor of beer, wine and soft drink products. From its main warehouse, T \& G supplies nearly 500 retail stores with beverage products. The beer inventory averages 100,000 cases with an annual demand for this product of 190,000 . The average cost per case of beer is $10.00. T \& G estimates that the annual holding cost per case of beer is $5.00. T \& G is paying $50 per order regardless of the quantity requested in the order. The company operates 300 days per year with a lead time for a new order of 4 days. Calculate and interpret the following inventory control measures: (i) Economic Order Quantity (ii) The Number of Orders to be Made (iii) The Average Inventory (iv) Annual Holding Costs (v) Annual Ordering Costs (vi) Reorder Point (vii) Cycle Time (Days) 3) Briefly discuss the importance of maintaining a good inventory policy in a distribution company