QUESTION $5(20$ Marks$)$

$5\mathrm{.}1$ Moses Mabhida Stadium is situated at the heart of KwaZulu Natal$$s economic hub. It has a conference center that is capable of handling $1,500$ participants. However, conference management personnel believe

that only $1,300$ participants can be handled effectively for most events. The last music event hosted,

although forecasted to have $1,300$ participants, resulted in the attendance of only $1080$ participants.

Determine efficiency and utilisation for the conference facility.

$(4$ Marks$)$

$5\mathrm{.}2$ Checkers Hyper in Rosebank sells $175$ units per month of OMO $5$kg washing powder. The unit cost of this product to the store is R$2\mathrm{.}50$ and the cost of placing an order has been estimated to be R$12\mathrm{.}00.$

Checkers Hyper uses an inventory carrying charge of I $=27\%$ per year. Provided this information, calculate

$($ holding and setup cost. If$,$ through automation of the purchasing process, the ordering cost can be cut to R$4\mathrm{.}00,$ what will be $($d$)$ the new

economic order quantity, $($e$)$ the order frequency, and $($f$)$ annual holding and setup costs? Explain these

results.

$(16$ Marks$)$