Question 1: Bhawan Trading Company buys and uses a component for production at RO 100 per unit. Per week requirement is 45 units. The carrying cost of inventory is 35% per annum and ordering cost is RO 50 per order. The store's manager argues that as the ordering cost is very high, it is advantageous to place a single order for the entire annual requirement. The store's manager has estimated the following for material control. Maximum consumption per week 70 units Maximum stock re-order period 10 weeks Average re-order period 8 weeks Average consumption per week 45 units Emergency Purchase period 5 weeks Calculate the following: (20 Marks) a. Reorder level b. Maximum level of stock c. Minimum level of stock d. Average level of stock e. Danger Level f. Economic Order Quantity g. Economic Order Frequency h. Number of orders per year i. Total annual ordering and carrying cost at EO