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1. Rainbow Cake House, a bakery shop uses approximately 10,000 kilograms of flour for 365 days a year. The annual cost of storing the flour

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1. Rainbow Cake House, a bakery shop uses approximately 10,000 kilograms of flour for 365 days a year. The annual cost of storing the flour is RM0.25. The ordering cost is RM50 per order and it takes 5 days for the supplier to deliver an order. Based on the information given, determine: a. Economic order quantity. (2 marks) b. Daily usage. (1.5 marks) c. Reorder point (1.5 marks) d. Number of order per year. (1.5 marks) e. Reorder cycle (1.5 marks) f. Total relevant inventory cost. (2 marks) [JUNE2019]

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