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I QUESTION TWO Maagizo Limited sell 300 units of special cleanser per month. Each unit cost Ksh 120. The cost of placing and receiving an

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I QUESTION TWO Maagizo Limited sell 300 units of special cleanser per month. Each unit cost Ksh 120. The cost of placing and receiving an order is Ksh 200 and holding cost per unit is 25% of purchase price. The lead time is 4 days and currently the company work 25days in a month. Required. 1) Compute economic order quantity, reorder point. ii) Based on your answer in i), compute holding cost and order cost iii) The manufacturer of special cleanser has offered quantity discount to Maagizo as follows a. The manufacturer will sell at Ksh 100 per unit for order size of between 230 and 244 units b. The manufacturer will sell at Ksh 90 per unit for order size of 245 units and above Evaluate whether it's worth taking the discount. 20 MARKS

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