PLEASE ANSWER ALL THE QUESTIONS

Question 2 a) Supreme Sdn. Bhd. sells whiteboards to colleges around Klang Valley area. The company purchases the whiteboards from a supplier at a price of RM400 per unit. Demand for the whiteboards is constant and is expected to be 100 per month. The annual unit holding cost rate is 10% of the purchase price while the cost of ordering is RM120 per order. Currently the company is ordering 6 times per year. There are 300 working days per year. i. What is the total annual inventory cost using the current policy? (3 marks) ii. If the company uses the Economic Order Quantity policy, what would be the savings per year? (3 marks) iii. Determine the reorder point if the lead time is 10 days. (1.5 marks) iv. Calculate the time between two successive orders. (1.5 marks) v. Draw two inventory cycles showing all the information in (iii) and (iv). (2 marks) b) Another company, Super, is willing to supply whiteboards to Supreme Sdn. Bhd. at the price of RM350 per unit if Supreme Sdn. Bhd. orders 500 units or more. Should Supreme Sdn. Bhd. accept the offer? Justify your answer. (4 marks)