Milky Son. Bhd currently purchases 2,500 units of material Alpha at a time and makes 10 orders a year. The company in the midst of reviewing its stock policy and has considered several alternatives for re-order quantity of material Alpha: a. Purchase 1,000 units at a time. b. Purchase 2,500 units at a time. C. Purchase 5,000 units at a time. It is ascertained that the purchase price per unit is RM10.00. However, there is no discount offered by the supplier on the whole order if the deliveries are below 2,500 units. A 5% discount is offered where deliveries are from 2,501 up to 3,500 units, and 10% reduction on the total order for deliveries in excess of 3,500 units. Each purchase order incurs administration costs of RM50.00. Storage, interest on capital and other holding costs are RM5.00 per unit of average stock quantity held. REQUIRED: Advise Milky Son. Bhd on the optimum order size amongst the alternatives. Use the following table to calculate the relevant costs. Size of Annual order Annual purchase cost Annual holding Total relevant order cost (RM) (RM) cost (RM) cost (RM) 1,000 2,500 5,000