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QUESTION 4 (30 Marks) Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information. Annual demand (units) 115,200 Purchase price per unit $ 300 Carrying Holding costs per unit $8 Cost per order $ 200 Required: 1. Determine the EOQ using the equation method. (6 marks) 2. Fill the blanks in the following table using the above data. (8 marks) No. of orders 10 20 30 90 120 Order size Average stock Carrying (Holding) costs Order costs Total costs 3. Calculate the holding, ordering cost & their total cost at the EOQ level. (5 marks) 4. Plot the graph at the EOQ level showing the numbers (2 marks). 5. Garmin Inc. has been offered a 2 per cent discount on the cost if it places orders in quantities of 19,200. Discuss whether the company should accept the discount and place larger orders, show your workings. (9 marks)