$SEM{M}^{2}3813$

QUESTION $1(10$ MARKS$)$

Rondu Sdn$.$ Bhd is a frozen meat wholesaler. The company is located in an indoor shopping mall that operates $300$ days per year. The frozen meat is supplied from vendor $Y$ who charges RM$20\mathrm{.}00$ per carton. The holding cost would be $25\%$ of a carton's unit cost per year. In addition, the vendor charges RM$50\mathrm{.}00$ per order to make a delivery to Rondu Sdn$.$ Bhd$.$ regardless of the number of cartons delivered. Average monthly demand at Rondu Sdn$.$ Bhd$.$ is $450$ cartons. An order from vendor $Y$ arrives in $5$ days when an order is placed.

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

a$.$ Determine the Economic Order Quantity $($EOQ$)$ for frozen meat each time when the orde placed.

b$.$ Determine the minimum inventory level in the stock that triggers a new order n placed.

c$.$ Determine the total annual inventory cost based on EOQ in Question $1(a).$

d$.$ Construct TWO $(2)$ inventory cycles by showing the Economic Orderin' Time$-$Between$-$Order $($TBO$),$ Re$-$order Point $($ROP$)$ and the lead$-$time fs