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(Question 3) (a) The Putra Height Company has always maintained a safety stock of 500 units and received its order 20 days after the order
(Question 3) (a) The Putra Height Company has always maintained a safety stock of 500 units and received its order 20 days after the order has been placed. The annual usage is 6,000 units and the order cost is RM30 per order. The company's carrying cost is RM0.10 per unit/year. Based on the information provided, calculate the following: i. Economic order quantity (3 marks) ii. Total order cost (5 marks) Total carrying cost (2 marks) iv. Reorder level (3 marks) V. Average inventory (2 marks) (b) The management of account receivable is an important aspect of the job of the financial manager. Explain the steps in which account receivable can be collected. (10 marks) 25 marks 4/6
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