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1.2.Study the information provided below to answer the following questions. INFORMATION BGW Technologies (BGW) stocks a new model of household inverter-generator for the South African
1.2.Study the information provided below to answer the following questions. INFORMATION BGW Technologies (BGW) stocks a new model of household inverter-generator for the South African market. The following are the details of BGW's operations in relations to the retail of the inverters during 2023: Ordering cost is R1,112 per order Inventory carrying cost is 2% per annum Cost of an inverter is R20,000 Normal demand is 100 inverters per week Required: 1.2.1. Calculate the economic order quantity (EOQ). (3marks) 1.2.2. If the supplier is willing to supply quarterly 1,300 units at a discount of 10%, is it worth accepting? (7marks)
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