Mini-scenario Punchy Peanuts Limited (PP) is Scottish company that of peanuts to retailers thoughout the UK and to the European coun-France Spain and Germany PP buys the hups of peanuts from its we supplier Caner Inc. in Georgia USA PPI expects annual demand for its hups of patuts to be 3.000 units. A bag of peanuts has a sling price of 10 and is purchased fie5fGnet Inc. PPI places an order for 100.000 bag of peanuts at regular interact the year. As the demand for bags of peanuts at present is uncertain, PPI buffer inventory of bags of peanuts, sufficient to meet demand for de The cost of placing en onder in CS, and the rage couet for lug of peanuts is 0.50 per unit per ye Pormally pays Gone in after 6 days, but Gamer Inc has opened a discount for cash clement within 30 days PP faces no currency risks ar pecsent Gamer Incimes Plisering and gets payment from PP in meting and Place UK and Eum in sterling and receives payment from them in terting Required 1. What is the annual core of the current picading the purchase price of Band ignoring any financing on Shrewokings (2 marks) 2 What is the annual saving if the comic energy is used to determine an optimal ordering policy, cach the purchase pece of Band ignoring any financing costs Show all working What would be the reluction in payable if PPI takes hantage of the discount offered by Carter Ine Show all working (2 marks) If Canter In decided to invece PPl in dollars and demanded payment in Us dollars and not sterling currently on the poific currency ink that PPI would be exposed to Note: The US dollar price would be 1969 the number of US dollar that was the current UK sterling cost ef Batth content constate of USS. marks) If PPI's the European customers demanded the line them in cuts and they paid PPI in cuts and not scaling as cument.caplain the specifiche tiskt PPI would be expect Note: The cum price would be the quantumber of cunos tut equals the current UK sterling dine price of the current exchange rate of i= E1.10 mark) Total 10 marks Mini-scenario Punchy Peanuts Limited (PP) is Scottish company that of peanuts to retailers thoughout the UK and to the European coun-France Spain and Germany PP buys the hups of peanuts from its we supplier Caner Inc. in Georgia USA PPI expects annual demand for its hups of patuts to be 3.000 units. A bag of peanuts has a sling price of 10 and is purchased fie5fGnet Inc. PPI places an order for 100.000 bag of peanuts at regular interact the year. As the demand for bags of peanuts at present is uncertain, PPI buffer inventory of bags of peanuts, sufficient to meet demand for de The cost of placing en onder in CS, and the rage couet for lug of peanuts is 0.50 per unit per ye Pormally pays Gone in after 6 days, but Gamer Inc has opened a discount for cash clement within 30 days PP faces no currency risks ar pecsent Gamer Incimes Plisering and gets payment from PP in meting and Place UK and Eum in sterling and receives payment from them in terting Required 1. What is the annual core of the current picading the purchase price of Band ignoring any financing on Shrewokings (2 marks) 2 What is the annual saving if the comic energy is used to determine an optimal ordering policy, cach the purchase pece of Band ignoring any financing costs Show all working What would be the reluction in payable if PPI takes hantage of the discount offered by Carter Ine Show all working (2 marks) If Canter In decided to invece PPl in dollars and demanded payment in Us dollars and not sterling currently on the poific currency ink that PPI would be exposed to Note: The US dollar price would be 1969 the number of US dollar that was the current UK sterling cost ef Batth content constate of USS. marks) If PPI's the European customers demanded the line them in cuts and they paid PPI in cuts and not scaling as cument.caplain the specifiche tiskt PPI would be expect Note: The cum price would be the quantumber of cunos tut equals the current UK sterling dine price of the current exchange rate of i= E1.10 mark) Total 10 marks