QUESTION $1(10$ MARKS$)$

TEPUNG Sdn$.$ Bhd$.$ is a packaging and distribution company for plain flour. Sales record shows the company sells average $400kg$ plain flour every month. Ordering cost is RM$25\mathrm{.}00$ per order while holding cost is estimated about RM$4\mathrm{.}36$ per kg per year. The plain flour is supplied by ABC Sdn$.$ Bhd$.$ and it takes two $(2)$ days to reach company. The company works $225$ days per year.

Note: All answers need to be calculated up to ONE $(1)$ decimal point only.

a$)$ Determine the optimum weight $(kg)$ of flour should be ordered in every purchase to minimize the annual inventory cost.

$(2$ marks$)$

b$)$ Determine the minimum inventory stock level that triggers a new order should be placed.

$(2$ marks$)$

c$)$ Calculate how long the time gap between one order to the next order.

$(2$ marks$)$

d$)$ Construct two inventory cycles showing the Economic Order Quantity, time between orders, reorder point and lead time.

$(4$ marks$)$