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Question - Huskie Berhad is trying to improve its inventory system and has installed inventory software at its retail store. Huskie Berhad 2021's sales were 80,000 units and it anticipates that the sales for 2022 will be increased by 10% of 2021's sales. The purchase price is RM12 per unit and the delivery time is 2 weeks. Ordering cost is RM8 per order and carrying costs per unit is 10% of the purchase price. The desired safety stock is 1,500 units. (Assume 1 year = 501 weeks) (Orders must be in multiples of 100 units)
i) What is the economic order quantity (EOQ)?
ii) Compute the number of orders that will be placed annually.
iii) Compute the total inventory cost.
iv) What would be the reorder point in year 2022?
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