Section B - Answer TWO questions only. Question 5 A supplier to a large car maker stamps out parts using a press shop. Changing a part type requires the supplier to change the dye on the press. This changeover currently takes four hours. The supplier estimates that each hour spent on changeover costs 250. The demand from the car maker for these parts is 1,000 per month. Each part costs the supplier 100 and the supplier incurs an annual holding cost rate (including physical holding cost and opportunity cost of capital) of 25%. i) What is the optimal batch size from the supplier's point of view? (5 marks) The car maker would like the supplier to reduce their batch size by the factor of four, i.e. if the supplier currently produces Q parts per batch, the car maker would like them to produce Q/4 parts per batch. 1 ii) Discuss the consequences of uncoordinated production and replenishment order quantities for the supplier and the car maker and how this issue might be resolved. (15 marks) iii) Which actions could the supplier take in order to achieve this result? (5 marks) Question 6 What are the advantages to retailers of sharing inventory