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4. Citra Indah Corporation estimated that its inventory requirement for next year is 350, 000 units. The cost per order is RM55 and the inventory
4. Citra Indah Corporation estimated that its inventory requirement for next year is 350, 000 units. The cost per order is RM55 and the inventory will be delivered two weeks after placing the order. The purchase price is RMIO per unit and the carrying cost per unit is 35% of the purchase price of the goods. The desired safety stock is 1, 500 units. (Assume there are 50 weeks in a year). i. Determine the optimal economic order quantity level. ii. How many orders will be placed annually? iii. At what inventory level should reorder be made? iv. Calculate total inventory costs per year
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