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****PLEASE ANSWER THE QUESTION BRIEFLY, THANK YOU Question 1 a) AA Pastry House orders and distributes ready-made cakes to local bakeries all over Terengganu. They
****PLEASE ANSWER THE QUESTION BRIEFLY, THANK YOU
Question 1 a) AA Pastry House orders and distributes ready-made cakes to local bakeries all over Terengganu. They buy their cakes from a well-known bakery in Brunei. Cakes are ordered in lots that require quantities of 200 units per order, and each order costs RM20 to make. Demand for cakes is 5,000 units per month and the carrying cost is RM0.50 per cake. i) What is the economic order quantity for AA Pastry House if the cakes are ordered in lot sizes? (3 marks) ii) How many times would AA Pastry House need to place orders per year? (3 marks) iii) Calculate the total inventory cost if AA Pastry House orders at optimum quantity. (4 marks) iv) What is the reorder point if AA Pastry House needs five days delivery time from its supplierStep by Step Solution
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