QUESTION 3 3.1 Zarro inc. manufactures seat covers for BMW and Toyota. The number of seats BMW orders from Zarro per year is 75000 units. It costs Zarro R250 to set up for production, and R110 to carry each unit annualy. Zarro operates a 8-hour daily shifts, 250 days a year, and produces 480 units per day. 3.1.1 Calculate the optimum order quantity. 3.1.2 Determine the cost of setting up for production. 3.1.3 Calculate the cost of carrying imventory. (2) 3.2 A company manufacturing skateboards has just received an order of 120 units for week 5 and 100 units for week 6 . The skateboard is made up of, four-wheel subassemblies (A), one board (B), two axles (C) and 12 screws (D). Each wheel subassembly (A) is made up of; one tire (E), one rim (F) and six screws (G). The lot sizes, lead times, on-hand inventory and scheduled receipts are given in the table below. 3.2.1 Draw a Product Structure Tree for the skateboard. 3.2.2 Develop a Material Requirements Plan (MRP) for the skateboard to cover a 6-week planning period. Use the table appended in page i, to answer the question. The use of excel and specialized programs are prohibited in answering this question. (12)