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Rondu Sdn . Bhd . is a frozen meat wholesaler. The company is located in an indoor shopping mall that operates 3 0 0 days

Rondu Sdn. Bhd. is a frozen meat wholesaler. The company is located in an indoor shopping mall that operates 300 days per year. The frozen meat is supplied from vendor Y who charges RM20.00 per carton. The holding cost would be 25% of a carton's unit cost per year. In addition, the vendor charges RM50.00 per order to make a delivery to Rondu Sdn. Bhd. regardless of the number of cartons delivered. Average monthly demand at Rondu Sdn. Bhd. is 450 cartons. An order from vendor Y arrives in 5 days when an order is placed.
Note: All answers need to be calculated up to one (1) decimal point.
a. Determine the Economic Order Quantity (EOQ) for frozen meat each time when the order is placed.
(2 marks)
b. Determine the minimum inventory level in the stock that triggers a new order need to be placed.
(2 marks)
c. Determine the total annual inventory cost based on EOQ in Question 1(a).
(2 marks)
d. Construct TWO (2) inventory cycles by showing the Economic Ordering Quantity (EOQ), Time-Between-Order (TBO), Re-order Point (ROP) and the lead-time for normal order.
(4 marks)
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