Salt & Pepper Ltd purchases 50,000 kg of a special type of material X per year from a single supplier. The company purchases material X in batches of 625 kg. Material X costs Rs16 per kg and the cost of ordering one batch of material X is Rs64. Due to the special nature of the material, the holding cost of one kg of material X is Rs4 plus an interest cost of 15 per cent of the purchase price of the material. Required (d)(i) Calculate the Economic Order Quantity and the annual savings that would be obtained by ordering in this order size. (6 marks) The supplier has offered a discount based on the order of a certain size as follows: Order size (kg) Price (Rs) 0-999 16 1000-1999 15.20 2000 and above 14.80 (d)(ii) How does the discount affect the optimal order size? (5 marks) (d)(iii) With the order size in d(ii), what will be the annual savings compared to the annual cost based on the EOQ in d(i). (2 mark)