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QUESTION 6 Exe Limited is a successful business that makes a single product, known as D-20D. The company regularly uses one type of material which

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QUESTION 6 Exe Limited is a successful business that makes a single product, known as D-20D. The company regularly uses one type of material which is purchased at RM1.20 per kg. The annual demand is 128,000 kilograms and sufficient storage space is available to accommodate order sizes up to 8,000 kilograms. The cost of holding stock is 15% per annum on inventory value and the cost of placing an order is RM11.25. Required: [Dikehendaki:] a. Using FOUR (4) order sizes options of 3,200, 4,000, 6,400 and 8,000 kilograms per order, prepare a schedule showing the stockholding cost and ordering cost under each option. [Menggunakan EMPAT (4) pilihan saiz pesanan sebanyak 3,200, 4,000, 6,400 dan 8,000 kilogram setiap pesanan, sediakan jadual yang menunjukkan kos pegangan stok dan kos pesanan di bawah setiap opsyen.] b. Indicate the order size that is the most economic to order. (Tunjukkan saiz pesanan yang paling ekonomi untuk membuat pesanan.) c. Calculate the Economic Order Quantity (EOQ) using the traditional EOQ formula, showing details of your workings. (Kira Kuantiti Pesanan Ekonomi (EOQ) menggunakan formula EOQ tradisional, tunjukkkan butiran kerja.] d. State two (2) objectives of material control. [Nyatakan dua (2) objektif kawalan material.)

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