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How can the company achieve the optimal level

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Reference no: EM132579749

The Cheap Store starts with 700 units stocks every week. The stock is used up each week and a reorder is made to replace the used up items. If the yearly carrying cost per unit is RM20 and the fixed order cost is RM80. (Note: there are 52 weeks in a year).

Calculate:

i. Carrying cost

ii. Restocking cost

iii. The economic order quantity

iv. Number of orders per year

v. Do you think that the company's inventory policy is optimal? How can the company achieve the optimal level?

Reference no: EM132579749

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