Question 2 SIMTECH Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Z. The company holds no buffer inventory. Information relating to raw material Z is as follows: Annual usage 144,000 units Purchase price 40 per unit Order costs 80 per order Annual holding costs 10% of the purchase price Required: a) Calculate: i) the EOQ for raw material Z. ii) the total annual cost of purchasing, ordering and holding inventories of raw material Z. [9 Marks]