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1. A firm consumes inventory of 15,000 units of a components per year. The carrying cost per unit per order is RO 2.5. The ordering
1. A firm consumes inventory of 15,000 units of a components per year. The carrying cost per unit per order is RO 2.5. The ordering cost is RO 20 per order. a. From the following information calculate and interpret the Economic Order Quantity (EOQ). (2 pts) b. Calculate the optimal number of orders to be placed. (2 pts) c. What are the total costs if the safety stock is 10% of the restocking cost? (2 pts)
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