Maira Hijab Enterprise (MHE) is a supplier that sells Exclusive Embroidery Silk Hijabs toboutique and online resellers. The annual demand is approximately 360 hijabs. MHE paysRM50 for each hijab and estimates that the annual holding cost is 2 percent of the hijab'svalue. It costs approximately RM100 to place an order (managerial and clerical costs).Required:Determine the economic order quantity (EOQ) (Round up your answers to the nearestfigure).а.b.Assuming a 300-day work year, how many orders should be processed per year andwhat is the expected time between orders?С.Calculate the total cost for the order.d.After several months of the introduction of the Exclusive Hijab, MHE decides toall costs related to their product due to the increment of hijab’s costs by the supplier.MHE currently orders 1000 hijabs per month. The new information as regards to theExclusive Hijab is as follows:i. The ordering cost for these is RM100 per order andii. The carrying cost is assumed to be 40% of the per unit cost.The hijab's cost is RM78 per unit; however, if the order is 120 or more, the cost dropsto RM50 per unit. Should MHE takes advantage of the quantity discount?

Name: Maira Hijab Enterprise (MHE) is a supplier that sells Exclusive Embro
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Description: Maira Hijab Enterprise (MHE) is a supplier that sells Exclusive Embroidery Silk Hijabs toboutique and online resellers. The annual demand is approximately 360 hijabs. MHE paysRM50 for each hijab and estimates that the annual holding cost is 2 percen

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Answered: Determine the economic order quantity…

Business

Operations Management

Determine the economic order quantity (EOQ) (Round up your answers to the nearest figure). а.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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