Octopus Company provides you with the following information regarding its inventory Maximum lead time 5 weeks Minimum lead time 2 weeks Average delivery time 3 weeks Lost interest rate 3% Insurance 2% Annual demand 250 000 Cost price per unit R20 per unit Ordering cost R30 per order Maximum weekly usage 4 000 units Minimum weekly usage 3 000 units Required Calculate the following: (a) EOQ (b) Number of orders per year (c) Reorder level (d) Total ordering cost (e) Minimum inventory level (f) Maximum inventory
Octopus Company provides you with the following information regarding its inventory Maximum lead time 5 weeks Minimum lead time 2 weeks Average delivery time 3 weeks Lost interest rate 3% Insurance 2% Annual demand 250 000 Cost price per unit R20 per unit Ordering cost R30 per order Maximum weekly usage 4 000 units Minimum weekly usage 3 000 units Required Calculate the following: (a) EOQ (b) Number of orders per year (c) Reorder level (d) Total ordering cost (e) Minimum inventory level (f) Maximum inventory
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 20P
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Please assist with D, E and F urgently
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