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A construction company uses 5,000 bags of cement per year. The ordering cost is RM10 per order and the annual carrying cost is RM0.10 per unit. The lead time is 2 days. The company operates 250 days in a year.
(a) Find the EOQ.
(b) Determine the reorder point (ROP)
(c) Calculate the ordering cost
(d) Calculate the carrying cost.
(e) Calculate the Total Annual Inventory Cost (TAIC).
(f) Determine the number of orders placed per year.
(g) Determine the reorder cycle.
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