A food manufacturing company orders raw material A$,1200$ kg annually. The company estimates its annual storage and handling cost to be RM$0\mathrm{.}50$ per kg per month. The administrative cost for placing and receiving an order is RM$250\mathrm{.}00.$ The company operates $310$ days per year. The ordering lead time is $5$ working days. Currently every two months the company will order $200$ kg$.$ The management wants to reduce the total inventory cost.

Suggest how this can be achieved and determine when the order should be made. Show all calculations to one decimal point to support your suggestion.QUESTION $2(10$ MARKS$)$

Callio Sdn$.$ Bhd$.$ develops a new crack testing stations for building construction industries. The development and installation of this new station requires ten $(10)$ activities and their related time estimates and costs are given in Table $2.$

Table $2$: Activities, time estimates and costs for pollution control device installation

$\backslash$table$[[$Activity$,\backslash$table$[[$Immediate$],[$Predecessor$($s$)]],\backslash$table$[[$Normal time$],[($weeks$)]],\backslash$table$[[$Max Crashed$],[$Time $($week$)]],\backslash$table$[[$Crashing Cost$],[($RM$/$week$)]]],[$A$,-,5,1,900],[$B$,-,6,2,960],[$C$,$A$,8,2,675],[$D$,$B$,2,1,1,300],[$E$,$D$,13,1,1,050],[$F$,$C$,$ D$,8,1,920],[$G$,$E$,12,1,800]]$