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2) Mata Corporation estimated that its inventory requirement for the next year is 500,000 units. The purchase price is RM 1.60 per unit and the
2) Mata Corporation estimated that its inventory requirement for the next year is 500,000 units. The purchase price is RM 1.60 per unit and the inventory will be delivered two weeks after placing the order. Historically the holding cost per unit is 25% of purchase price of goods and the cost per order is RM 90. Usually the firm carries 10.500 units as safety stock. Assume that there are 50 weeks in a year. You are required to calculate: i. Economic Order Quantity (EOQ). ii. Total cost of ordering and holding the inventory
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