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How many orders would the company need to place this year

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Question - As one of the largest generator dealers in Surabaya, PT Listrik Menyala sells about 1,200 generators a year. The cost of placing an order with its supplier is IDR3,000,000 and the inventory carrying costs are IDR2,000,000 for each generator. The management of PT Listrik prefers to always maintain safety stock of 130 every year.

Required -

a. What is the EOQ?

b. How many orders would the company need to place this year?

c. What is the average inventory for the year?

Reference no: EM133187588

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