QUESTION FIVE Lukundo is a hardware manufacturer situated in Mufulira. The following data related to major control levels of a critical item of inventory. Monthlydemand is1,000units Ordering cost is K350 per order Purchase cost per unit K8 Carrying costs are 15% per annum Average usage 100 units per day Minimum usage 60 units per day Maximum 130 units per day Lead time 20 – 26 days Required: Calculate the following for Lukundo Co. Economic order quantity (3 marks) Reorder Level (2 marks) Minimum level (3 marks) Maximum level (3 marks) State four (4) assumptions for the EOQ (4 marks) Explain the following terms associated with inventory management. Lead time (1 mark) Economic Order Quantity (1 mark) Buffer or safety inventory (1 mark) Re-order level (1 mark) Re-order quantity (1 mark) [Total: 20 Marks]