Answer all Questions. Total marks: 10 1. Multiplex Limited is a table-glass retailer located in Kandy. The company purchases glasses from Blue Sky PLC. The details of the table glasses are as follows: Purchase price per glass - Rs. 3,000 Cost of an order - Rs. 500 Annual cost of carrying a glass 2% of purchase price Monthly Demand 1,250 Units The company has been offered a discount of 1% on the price of a table glass if the lot size is 3,000 table glasses at a time. Required: i. Calculate the Economic Order Quantity. ii. Calculate the total inventory cost. iii. Draw a graph and discuss the behaviour of the total inventory holding cost, total ordering cost, and total cost for the given scenario. iv. Advise whether the quantity discount offer can be accepted (Assume that the inventory carrying cost does not vary according to the discount policy) (07 Marks) 2. Brown PLC sells and delivers office furniture. The costs associated with the acquisition and annual operation of a delivery truck are given below: Required: Assume that Brown PLC has purchased one truck that has driven 50,000 miles during the first year. Compute the average cost per mile of owning and operating the truck. (03 Marks)