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3 Plax Ltd sells 200 000 units of an organic fertilizer product to retail stores. The cost to the company is R50 per unit. The
3 Plax Ltd sells 200 000 units of an organic fertilizer product to retail stores. The cost to the company is R50 per unit. The cost of processing each order is R800 and the carrying cost is R5 per unit. i. Use the EOQ model to determine what amount the company should order at a time. (3 Marks) ii. What is the average inventory? (2 Marks) iii. How many orders will the company place over the year? (2 Marks)
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