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XYZ LTD is a company based in Cape Town. XYZ imports printers from China and sells it to local corporate clients. Delivery normally takes 2 weeks. XYZ sells 5233 printers on average per year. Annual carrying costs is 21%. XYZ negotiated the purchase price per printer to be R316. Every time that XYZ places an order the fixed ordering cost per order is R1120.
Answer the following questions. Round your calculations and answer to the nearest 2 decimals. Use a "full stop" to indicate a decimal point.
1. What is the economic order quantity of printers for XYZ? Blank 1. Calculate the answer by read surrounding text.
2. Assuming certainty in delivery and usage, at what inventory level should the firm reorder? Blank 2. Calculate the answer by read surrounding text.
3. Assume a 225-unit safety stock is carried. What will the additional inventory cost be? R Blank 3. Calculate the answer by read surrounding text.
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