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B-Couple Sdn. Bhd. assembles electric rice cooker for home appliance. Each rice cooker has one heating plate. The heating plate supplied by Zenmotor Sdn.

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B-Couple Sdn. Bhd. assembles electric rice cooker for home appliance. Each rice cooker has one heating plate. The heating plate supplied by Zenmotor Sdn. Bhd. It takes four (4) days for heating plate to arrive at the B-Couple Sdn. Bhd. after the order is placed. It is estimated weekly demand for rice cooker is 650 units. The ordering cost is RM18.25 per order. The holding cost is RM0.50 per heating plate per year. This company works 50 weeks per year and 5 days per week. a) Determine optimum number of heating plate should be ordered to minimize the annual inventory cost. b) (2 marks) Determine the minimum inventory stock level that trigger a new order should be placed. (2 marks) c) Calculate the time between order. (2 marks) d) Construct two inventory cycles showing the Economic Order Quantity, time between orders, reorder point and time to place order.

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