One of the crucial parts for assembling a road bike is the high quality of the carbon frame. AES requirement for this carbon frame at least is 4500 units per month at RM 300 per unit and the handling cost is 15% of the unit price. The cost for preparing the order is RM17.00. Assume that the company operates on 288 working days per year.

i) Compute the Economic order quantity.

ii) How many orders should be placed each year?

iii) How often will an order be placed (length of order cycle)?

iv) What is the reorder if the part requires 2 days to arrive at the factory?

v) Total annual carrying cost.

vi) Total annual ordering cost.

vii) Total annual relevant cost.