2 Bonang Ltd is a company that buys nutritional salt in bulk and repackages it into suitable containers for the retail sector. The company uses 2 000 tons per year. There are 240 working days in the year and the purchase price of salt to the company is R220 per ton. The cost of placing each order is R600 and the carrying cost is R100 per ton. It takes the company four days from the date of order to the day of receiving inventory from the supplier. (a) Calculate the EOQ to decide what quantity the company should order. (2 Marks) (b) Calculate the re-order point? (8 Marks) (c) What is the value of the average inventory in store? (4 Marks) 2