(a) Super market manufacturers a product branded bora. The main raw material used in the manufacture of borais material MT2011 The current stock control policy of the company is to order material MT2011 twice a year. The quantity of each order is equivalent to one-half of the years forecast demand. The following information relates to material MT2011 Annual demand 12,000 units Ordering cost sh. 60 per order Annual holding cost 12% of the purchase price Purchase price per unit sh. 75 Lead time 1 month The procurement manager proposes to change the current stock control policy to the Economic Order Quantity (EOQ) policy. He estimates that a buffer stock of an additional 300 units should be provided to cover fluctuations in demand. Required: If the new policy is adopted, calculate for material MT 2011: (i) Reorder level that should be maintained (2 marks) (ii) Economic Order Quantity (2 marks) (iii) Anticipated reduction in the value of the average stock investment (3 marks) (iv) Anticipated reduction in total inventory costs during the first and subsequent years (5 marks)