Question
2.2 The annual demand of Maize Meal = 750 units (bigger size), Delivered purchase cost = R35/units, Annual carrying cost percentage= 25 percent, Order cost
2.2 The annual demand of Maize Meal = 750 units (bigger size), Delivered purchase cost = R35/units, Annual carrying cost percentage= 25 percent, Order cost = R50/order. The lead time is 10 working days. Assuming 20 working days per month.
2.2.1 Determine the Economic Order Quantity (2 marks)
2.2.2 Determine the reorder point (2 marks)
2.2.3 Determine the average inventory (2 marks)
2.2.4 Suppose orders are placed only at review time. Find the optimal period and the optimal order quantity. (4 marks)
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Information Technology Project Management
Authors: Kathy Schwalbe
6th Edition
978-111122175, 1133172393, 9780324786927, 1111221758, 9781133172390, 324786921, 978-1133153726
