Note: need answer for c only

YNOVA QUESTION 4 (40 MARKS) 1. Kyoko Trading is producing fruit juice product. The company uses approximately 12 glass jars per day for its fruit juice product. These glass jars are purchased frum a vendor for RM15 cach, and the lead time is 2 days. The holding cost per jar is 20% from the purchase cost. The ordering cost per order is RM18.50. The company runs it operation about 50 weeks per year with 5 days per week. i. Calculate the economic order quantity. (2 marks) ii. Given the EOQ. determine the total inventory cost (including purchase cost), 15 marks) iii. Calculate the time between orders. (2 marks) iv. Calculate the reorder point (ROP). (2 marks) b. Iman the owner of Kyoko Trading wants to reconsider her decision of buying the glass jars and is thinking of producing the jars at her place. The production capacity for this product is 50 per day. Each time production starts, il cost the company RM25 to move materials into place, reset the assembly line, and clean the equipment. Iman estimates that the cost (including lahor time and materials) of producing one jar would he RM14.80. The holding would be 20% of this cost. i. Estimate the optimal production quantity. 14 marks) ii. If the company were to continue to produce based on the optimal production quantity, how many days would production continue? ( (2 marks) 11. Under the current policy, how many productions runs per year would he required? (2 marks) iv. If Iman uses the optimal production quantity, determine how many jars would be in inventory when production stops. (2 marks) v. Given the optimal production run size. what is the total annual inventory cost? (6 marks) CONFIDENTIAL/4 FRA/PQS2133NOV21 c. Upon hearing that Iman is considering manufacturing the jars at her place, the supplier has offered Iman if she purchases the jars in lots of 1.000 the price will drop from RM15 to RM14.30 per unit but this time lead time will increase to 5 days for this larger lot size. i. Calculate the total annual inventory cost (including purchase cxt) if Imran huys the jars in lot size of 1,000 at RM14.30 cach. (5 marks) If Iman agreed to purchase in 1,000 units of jars, determine the new reorder point (ROP). (2 marks) ii. iii. What would you advise Iman to do if she had the option of buying the jars for RMIS u prove or producing them in-house for RM14.80 and taking advantage of the discount? 14 marks)