You are employed as an Industrial Engineer at a value manufacturer. The company provide valves and fluid control devices to the mining industry and many municipalities. Recently, stock outs occurred which led to customer complaints and cancelling of orders. The cancellation of order, if it continues, can negatively impact the profitability of the organisation. Senior management requested you to investigate and prepare a plan to negate stock outs. Your investigation produced the following information. One of the most popular valves, the Western, has an annual demand of 4 000 units. The cost of each vale is R90. Inventory carrying cost is estimated to be 10%of the cost of each valve. Your investigation further showed that the average ordering cost is R25 per week. Furthermore, the lead time for the valve two weeks and the demand during this period is approximately 80. You have decided to implement inventory control and you are required to: a. Compute the Economic Order Quantity (EOQ). (8) b. Compute the Reorder Point (ROP). (3) C. Compute the average inventory as well as the annual holding cost. (6) d. Compute the number of orders to be placed annually to prevent stock outs and compute the annual ordering cost. (8) [251