g question (b) What problems does a company experience when it runs out of stock? (7 Marks) C) Explain the objectives of materials handling and suggest ways of achieving each (8 Marks) d) Inventory is evil. Discuss (6 marks) e) Magongo Ltd has determined that its reorder point for a product is 50 units. The annual holding cost per unit is KShs 500 while the stockout cost is KShs 4000 per unit. The optimal number of orders per annum has been established as 6. The company has established the following probability distribution for inventory demand during the lead time. Number of Units Probability 30 0.2 40 0.2 50 0.3 60 0.2 70 0.1 Required Determine the optimal safety stock to keep (8 Marks) ho