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QUESTION 5 (10 marks) ABC Sound System manufactures and sells stereo and compact disc (CD) sound systems in both console and components styles. All parts of the sound systems with the exception of the speakers are produced in the company's own plant. Speakers used in the assembly are purchased from XYZ Company. Johan, the purchasing agent for ABC Sound System submits a purchase requisition for the speakers once every four weeks. The company's annual requirement is 5,000 units (20 per working day), and the cost per unit is RM600. Associated with the purchase of each shipment are procurement costs. These costs, which amount to RM200 per order, include the costs of preparing the requisition, inspecting and storing the delivered goods, updating inventory records, and issuing vouchers and a cheque for payment. In addition to procurement costs, there are inventory carrying costs incurred, which include insurance, storage, handling, taxes and so on, and these costs equal RM60 per unit per year. a) Compute the optimal order quantity. b) Compute the cost savings that the company will realize if it implements the optimal inventory policy