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to be 15,000 units. Required: Calculate the EOQ to the nearest 1000 units 4.Jitahidi Company is located in Kariobangi Light industries area in Nairobi. The company manufactures a product 'Comex', which is used in the building industry. The main are materials used in the manufacture of 'Comex'is material B42000. The following information relates to the material B42000 Annual requirements: 144,000 Ordering costs: Shs12,500 per order Annual holding costs: 20% of the purchase price Purchase price per unit: Shs500 Safety stock requirement: None Required: (i) The economic order quantity (ii) The number of orders needed per year1.Highlight the essential requirements of an effective material control system. 2.Mwaura uses the EOQ formula to establish its optimal reorder quantity for its single new material. The following data relates to the stock costs P = Shs 15 per item Ch = Shs50 per order Co = Shs5 per order Storage costs = 10% of P + Shs0.20 per unit p.a. D = 4,000 units Required Calculate the economic order quantity 3.H limited wishes to minimize its stock costs. At the moment, its reorder quantity is 1000 units. Order costs are f10 per order and annual holding costs are f1.2. H estimates the annual demand5.a) Explain the advantages of centralized system of maintaining stores. b) Explain the assumptions behind the determination of Economic Order Quantity (EOQ). c) The following information is given for material Y-20. Consumption: Annual 360,000 units Maximum 1,200 units/day Minimum 800 units/day Normal 900 units/day Re-order period 12 -24 days Re-order quantity 32,000 units Required: Work out i) Re-order level. ii) Minimum stock level. iii) Maximum stock levela The following data relates to selected mortgage backed securities (MBSs): MBS Initial Coupon Underlying Nominal Option Z-spread principal Rate (%) .maturity spread adjusted Sh. "millions" (years) (%%) spread (%) W 250 7.0 30 1.21 0.28 0.79 X 175 7.8 25 1.43 0.49 1.16 Y 225 7.2 20 1.62 0.31 1.12 190 8.0 30 1.59 0.40 1.14 The outstanding principal of MBS-Z is Sh.183 million at the beginning of the month 20 a total mortgage principal payment for the month is Sh.0.42 million. Required: i. Calculate the expected prepayment for month 20 using 125 public securities assoc (PSA). ii. Justify the MBS that would add the most relative value in relation to the risk associate the security assuming the effective durations of the MBS securities is approximately the