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3 . The Sandakan Timber company processes 1 0 , 0 0 0 logs annually, operating 2 5 0 days per year. The company has
The Sandakan Timber company processes logs annually, operating days per year. The company has estimated that the ordering cost is RM per order, the cost of carrying logs in inventory before they are processed is RM per log on an annual basis and it takes days to receive the order from the supplier. Determine the following.
a The economic order quantity
b The minimum total annual inventory cost.
c The optimal number of orders per year
d The average inventory level
e The optimal time between orders
f The amount of logs that should be on hand when an order is placed
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