4. Mr Jackson Lim, the owner of a bicycle shop, sells 1,000 helmets every month. Each helmet cost $12.00 and he sells for $24.00. It costs Mr Jackson Lim $50.00 to process each purchase order that he submits for helmets. Mr Lim's carrying cost is 10% of each purchased unit and his bicycle shop open for business 300 days per year. The lead time between when an order is placed with the supplier and when it is received is 10 days. CT Chlo CD + 2 Q. + PD where l. = 20,D Ch (a) What is Economic Order Quantity (EOQ)? (2 marks) (b) Calculate the Annual Ordering Cost (AOC), Annual Holding Cost (AHC) and Total Annual Cost (TAC). (3 marks) (c) Compute the re-order point. (1 marks) (d) What does this re-order point mean to you? (4 marks) (e) Mr Jackson Lim wants to grow and survive. How does Jackson Lim derive the decision-making process strategy that comes from internal environments? (4 marks) (f) Mr Jackson Lim knows ethical behaviour that make his business sustainable. What are the advantages to behave ethically? (4 marks) (g) Mr Jackson Lim understands the management of risk is very important. What are the reasons? (7 marks)