Question 4 (10 marks) Pure Water Filter Ltd. is a dealer in building products. The following details relate to one of its products, XYZ for the year ended 31 December 2000: Sales 500 units Purchase price $100 per unit Holding costs 25% of purchase price Ordering cost $250 per order Required: (a) Calculate the Economic Order Quantity (EOQ) (2 (2 marks) (b) Determine the number of orders placed per year, based on your answer to (a)? (2 marks) (c) Calculate the total inventory cost. (2 marks) (d) If the safety stock level is 20 units, and the lead-time is 2 weeks, calculate the reordering point. (2 marks) (e) Due to an increase in the rental of warehouse space, the carrying cost is expected to increase by 10%. Recalculate the EOQ and the number of orders placed per year. (2 marks)