QUESTION1 Omega Products is involved in the production of camera parts and has the following inventory, carrying and storage costs: i. Annual unit usage is 400,000 (Assume a 50-week year in your calculations) The carrying cost is 50% of the purchase price ii. The purchase price is RM 4 per unit iv. The ordering cost is RM 20 per order v. The desired safety stock is 20,000 units vi. The delivery time is 1 week Given the preceding information, calculate: a) The optimal EOQ level (5 marks) b) The annual inventory costs (5 marks) c) The inventory order point. (At what level of inventory should a new order be placed?) (5 marks) Omega Products receive a discount of 5% on the purchase price if it increases sales to 500,000 units. Assume that the company accepted the discount offer and other cost unchanged Calculate: a) The optimal EOQ level (5 marks) b) The annual inventory costs