Explain the concept of $$ABC$$ analysis with graphical representation. $(5$ marks

B$).$ What is EOQ? What are the costs associated with EOQ? Explain with graph. $(6$ marks$)$

Stock

levels

Time

Figure $5$: Managing Stock Levels

C$).$ Please answer the questions below based on Figure $5$:

$($i$)$ Identify the area on the chart denoted by $$A$.(1$ mark$)$

$($ii$)$ Identify the area on the chart denoted by $$B$.(1$ mark$)$

$($iii$)$ Identify the line on the chart denoted by $$C$.(1$ mark$)$

D$).$ The soft goods department of a large department store sells $175$ units per month of a certain window curtain. The unit cost of a curtain to the store is $$2\mathrm{.}50$ and the cost of placing an order has been estimated to be $$12\mathrm{.}00.$ The store uses an inventory carrying charge of I $=27\%$ per year. Determine $($a$)$ the optimal order quantity, $($b$)$ the order frequency, and $($c$)$ the annual holding and setup cost. $(6$ marks$)$

E$).$ A part is produced in batches size of $2,500$ pieces. Annual demand is $35,000$ pieces, and piece cost is $$8\mathrm{.}50.$ Setup time to run a batch is $1\mathrm{.}5$ hr$,$ cost of downtime on the affected equipment is figured at $$200/$hr$,$ and annual holding cost rate is $18\%.$ What would the annual savings be if the product were produced in the economic order quantity? $(4+4+4+2$ marks$)$