0. List out the reasons for keeping inventories. 1. Mention assumptions of economic order quantity. 2. A factory required 1,500 units of an item per month, each costing 27 Birr. The cost per order is 150 Birr and inventory carrying charge is 20% of price. Find EOQ and total material cost. Would you accept a 2% discount on a minimum supply of quantity of 1,200 units? 3. The XYZ Ltd. carries a wide assortment of items for its customers. One of its popular items has annual demand of 8000 units. Ordering cost per order is found to be Rs. 12.5. The carrying cost of average inventory is 20% per year and the cost per unit is Re. 1.00. Determine the optimal economic quantity and make your recommendations. No. of orders/ Lot size Average Carrying Ordering (2) inventory (3) cost (4) cost (5) year (1)