1. SA Sdn Bhd manufactures machined components. The company is equipped with various types of CNC machines for its manufacturing plant. The manufacturing plant is equipped with a centralised air conditioning to ensure the CNC machines are working in controlled environment. The company is planning to upgrade the plant centralised air conditioning system. The upgraded centralised air conditioning system will be equipped with two units 350RT chiller. a. Suggest an appropriate centralised chiller system for the company. Provide a sketch of configuration of the proposed system and explain the functions of each of the main components of the system. Evaluate the horse power capacity of the compressors for the system. The centralised chiller system is being operated for 10 hours (from 8 am to 6 pm) daily. Estimate daily electricity cost of operating the chiller system. Suggest an option system which could contribute to reduction of electricity cost by operating the chillers during off peak hours. Include the configuration of the proposed system, its operations and functions of each of the component of the system. [Note: peak electricity charge from 8am to 10pm and off-peak electricity charge from 10pm to 8am; The peak electricity charge is 36.00 Cents per kWh, off-peak charge is 22.00 Cents per kWh) [25 marks) b. The company keep stocks for replacement spares of its tooling for the CNC machines. Among the spares are the turning tools for the CNC lathe machines as the tools are long lead items and have to be imported. The company uses 700 turning tools annually. The cost per unit is RM100. Holding cost per unit is RM16 per year and the ordering cost is RM250. The quantity discount schedule for the turning tools provided by the supplier is as per TABLE Q1b. Propose an appropriate inventory model the company should adopt and select the quantity discount schedule that gives the least cost. TABLE Q1b Discount no Discount % 1 2 3 Discount quantity 1 - 150 151 - 499 500 and greater No discount 15 Discount price (RM) 70 59.50 56 20 [25 marks]