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Calculate the number of orders per year

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Reference no: EM132998693

Question - Boing-Boing Ltd has the following figures regarding its inventory:

Cost price per unit R50 per unit

Storage cost per unit R5 per unit

Annual usage 100,000 units

Normal delivery time 2.5 weeks

Insurance cost per unit R5 per unit

Ordering cost for 2 orders R80

Safety inventory 5,000 units

Assume 50 normal working weeks per year, and four weeks per month.

Required -

(a) Calculate EOQ?

(b) Calculate the Number of orders per year?

(c) Calculate the Ordering cost per year?

Reference no: EM132998693

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