2 (14 marks) You have just been appointed as financial manager of Slow-Moving-Stock Limited. One of your main focus areas is to improve the inventory management system that the company currently. has in place. You have extracted the following records from the Inventory Management Software. ITEM X4355 January February March April May June Total Trading Sales (u) days 1500 20 1300 18 1200 20 1100 19 1100 20 1100 21 July August September October 1500 22 1600 20 1700 20 1800 21 November December 2500 22 1900 17 18300 240 Normal days for delivery 5 Maximum days for delivery 8 Cost of placing an order R850 Carrying cost of a unit per year R250 You also found that total purchases for all items for the year was R55 000 000 with the end of year inventory value being R26 000 000. a) Determine and comment on the inventory days ratio. (5 marks) b) Determine the appropriate reorder level for Item X4355. (6 marks) c) Determine the Economic order quantity for Item X4355. (3 marks) Page 13 of 14