Section B Answer three (3) questions from this section 1. (a) A hardware company purchases 9,500 units of hard disc a year. The supplier offers the units for sale at e10.00 per unit for up to 699 units and c8.75 per unit for 700 units or more. What is the economic order quantity, if the order cost is 50.00 per order and the holding cost is 35 percent per unit per year? Should the offer be accepted? As a materials' manager for your firm, what is your advice to management? (15 marks) (b) As a purchasing officer in Ghana, why would you consider standard specification over brand specification? (10 marks) 2. a. A small warehouse stores four different SKUs in pallet loads. If pallets are stacked three steps high and there is to be 100% accessibility, how many pallet positions are needed? Indicate the pallet positions for each SKU. What is the cube utilization? (10 marks) SKU A 3 SKU B 5 SKU C 16 SKUD 10 b. For a retail setting, state and describe four basic systems of stock location with an example. (10 marks) c. As a materials manager, why do you consider stock location important in a warehouse? (5 marks) 3. The materials manager of Tupperware Group of companies sought for the expansion of their major warehouse located in Ghana. This was not welcomed by managers of the company. After series of deliberation, the warehouse was expanded to a capacity of 80,000 cubic feet of usable space. The heigh of this warehouse is given as 25 feet. With the information of the vertical storage capacity and footprint of all pallet racks in the warehouse you determined the actual storage cube of the warehouse to be 500,00 cubic feet. Report on the utilization of this warehouse and comment and its efficiency, assuming the 600,000 cubic feet to be effective use of the warehouse. (10 marks (b) you are required develop a Master production schedule for this warehouse, outline the information needed to do this. (7.5 marks)