Question: answer must be in 100-200 words Please help solve all... please Geliga Bhd. is a distributor of industrial product in Johor. Item A is one

answer must be in 100-200 words

answer must be in 100-200 words Please help solve all... please Geliga

Please help solve all... please Geliga Bhd. is a distributor of industrial product in Johor. Item A is one of the materials needed in the production process. Item A is consumed at a steady usage at 4000 units per annum. The costs of ordering item A are invariant with respect to order size. The ordering cost has been calculated at RM30 per order. Each order is checked by an employee engaged in using item A in production who earns RM5 per hour irrespective of his output. The employee generates a contribution of RM4 per hour when he not involved in material checks and the stock check takes 5 hours. Annual holding cost amount to RM15 per unit. Required: a. Calculate the optimal order size of item A. b. The supplier of item A has recently offered Geliga Bhd. a quantity discount of RM0.24 per unit on the current price of RM24, for all orders of 400 or more units of item A. Please help solve all... please Geliga Bhd. is a distributor of industrial product in Johor. Item A is one of the materials needed in the production process. Item A is consumed at a steady usage at 4000 units per annum. The costs of ordering item A are invariant with respect to order size. The ordering cost has been calculated at RM30 per order. Each order is checked by an employee engaged in using item A in production who earns RM5 per hour irrespective of his output. The employee generates a contribution of RM4 per hour when he not involved in material checks and the stock check takes 5 hours. Annual holding cost amount to RM15 per unit. Required: a. Calculate the optimal order size of item A. b. The supplier of item A has recently offered Geliga Bhd. a quantity discount of RM0.24 per unit on the current price of RM24, for all orders of 400 or more units of item A

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