A shop sells 3500 batik shirts in a year and the sales are relatively constant throughout the year. The batik shirts are purchased from Indonesia for RM 30.00 each. The lead time is 1 day. The holding per batik shirt per year is RM 0.50 and the ordering cost per order is RM 4.50. There are 240 working days per year 2. If the shop  decides to produce its own tudung batik with an estimated unit cost of RM 15.25, set-up cost is RM 5.00 and daily production rate at 5, determine the following: a. Daily demand rate, b. Economic Production Quantity (EPQ), c. Production time, t and inventory sold during t days, d. Annual purchasing cost, e. Annual inventory cost, f. Annual set-up cost, g. Total annual inventory cost, and h. Re-order Point (ROP).

a. Daily demand rate,

b. Economic Production Quantity (EPQ),

c. Production time, t and inventory sold during t days,

d. Annual purchasing cost,

e. Annual inventory cost,

f. Annual set-up cost,

g. Total annual inventory cost, and

h. Re-order Point (ROP).