QUESTION 2 2.1. The annual demand of an item of stock is 180 units. The item cost RM200 per unit to purchase. The holding cost of one unit for one year is 15% of the unit cost. The ordering cost is RM300 per order. The supplier offers a 3% discount for orders of 60 or more units and a discount of 5% for orders of 90 or more. Required: a) Calculate the total stockholding cost if the order size is: i) 45 units ii) 60 units iii) 90 units (17 marks) b) Suggest which order size should be selected. (3 marks) 2.2. Briefly discuss Economic Order Quantity (EOQ) model