Product cycle time is the time it takes for raw materials to be transformed into a finished

product. A firm makes $2500$ products per day. Before it is sold, each product represents

RM $$300$ in material and labour.

i$).$ If the cycle time is $14$ days, how many ringgit Malaysia RM is tied up with in

process inventory? If the company$$s internal interest rate is $10$ percent, what is the

annual cost due to in process inventory $?$

ii$).$ If the cycle time is reduced to $10$ days as a result of process improvement, what is

the annual cost saving $?$