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can u solve e , f , g and h plz QUESTION 1 (30 MARKS) Nur Muhammad Company involves in printing operations. It uses 200
can u solve e , f , g and h plz
QUESTION 1 (30 MARKS) Nur Muhammad Company involves in printing operations. It uses 200 reams of paper per week. The papers are purchased from a supplier 100 miles away for RM15 each and the lead time is 5 days. The holding cost per ream is 10% of the unit cost and the ordering cost is RM18.75 per order. The company runs it operation about 50 weeks per year with 5 days per week. Determine: a. The economic order quantity. (3 marks) b. Given the EOQ, determine the total inventory cost (including purchase cost). (5 marks) c. What is the time between orders? (3 marks) d. the reorder point (ROP) (2 marks) Nur Muhammad wants to reconsider his decision of buying the papers and is considering making the papers in-house. He has determined that set-up cost would be RM25 in machinist time and lost production time, and 50 printing jobs can be produced in a day once the machine has been set up. Nur Muhammad estimates that the cost (including labor time and materials) of producing one printing job would be RM14.80. The holding would be 10% of this cost. e. Estimate the optimal production quantity. (4.5 marks) f. If Muhammad uses the optimal production quantity, determine the maximum inventory level. (3 marks) g. Given the optimal production run size, what is the total annual inventory cost? (6.5 marks) h. Analyze the cost, should Nur Muhammad make the decision to manufactureStep by Step Solution
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