6. An automobile components making company based in UAE found that its inventory strategy of ordering the raw material is not appropriate. Due to this, the company's productivity has been consistently decreasing in the recent past and the production stopped many times due to the non-availability of raw material and increased the stock-out costs and total inventory cost. Therefore, the company decided to reduce its total inventory cost to improve its productivity related to the operations. On an experimental basis, it studied the costs of inventory of one single item. The annual demand of this item is found to be 38000 units. Its order cost is found to be 80 AED per order and the holding cost is calculated as twelve percent of the ordering cost. The company purchases its raw material for this item at a cost of 160 AED. Evaluate the above data to recommend an operations strategy for i. Ordering the items economically [2 Marks] ii. Find the total cost of inventory [2 Marks] iii. Provide your suggestions