1. A bakery buys sugar in 50 pound bags. The bakery uses 2500 bags of sugar per year. Order cost is Tk. 500per order. Annual carry cost is Tk. 4000. (Working Days =326 days). Lead time is 6 days/

a.Find EOQ

b.How many order per year will there be

c.Find the Total Inventory Cost at EOQ

d.Find the length of the order cycle

e.Find the ROP

2.

Item Code

Usage

Unit Cost

9001

100

1700

4232

444

12

66

30

700

8888

150

22

9280

10

1020

4050

80

140

6850

2040

11

3010

390

24

4400

5100

8

Determine the percentage of items in each category and annual value of items. Classify the products according to the A-B-C method