The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules. This system calls for the production of what the customer wants, when they want it, in the quantities requested, where they want it, without it being delayed in inventory. (a) JIT system has many benefits and also some risks. Do you agree? Discuss your answer. (10 marks) (b) HU Enc. is a retailer of bicycles. The most popular children's' bicycle has an annual demand of 30,000 units. Demand is predictable and spread evenly throughout the year. The bicycles are purchased by HU Enc. for RM 200 each. Ordering cost are RM 150 per order and the annual cost of holding one bicycle in inventory is RM 25. Required: i. Calculate the Economic Order Quantity (EOQ) for the children's bicycle. (5 marks) ii. Calculate the total annual ordering and holding costs for the bicycle assuming the company purchases the EOQ quantity, does not hold any buffer inventory and the lead time is zero