SECTION A - COMPULSORY QUESTION ONE Bunda Company is a distributor of air filters to retails stores. It buys its filters from several manufacturers. Filters are ordered in batches of sizes of 1,000, and each order costs K40 to place. The unit price is K1.20 a filter, Demand from retail stores is 20,000 filters per month, and carrying cost per month is 10 percent of the price. Required (a) What is the optimal order quantity with respect to the batch sizes? (7 marks) (b) What is the total inventory cost for the month? (8 Marks) (c) What would be the optimal order quantity if the carrying cost were cut in half the cost a filter per month? (5 Marks) (d) What would be the optimal order quantity if ordering costs were reduced to K30 per order