Question $4(10)$

Nico's Manufacturing uses $3,000$ units of a product per year on a continuous basis. The product carrying costs are R$50$ per year and ordering costs are R$270$ per order. It takes $30$ days to receive a shipment after an order is placed and the firm requires a safety stock of $10$ days of usage in inventory.

$1.$ Calculate the economic order quantity $($round up to the nearest whole unit. $(2)$

il$.$ Calculate the total cost per year to order and carry this item. $(3)$

Their supplier has notified the company that if they increase their order quantity by $65$ units they will give the company a discount. Calculate the minimum rand discount that the supplier will have to give Nico's Manufacturing to result in a net benefit to the company. $(5)$