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a) Asyraf Hadi Sdn Berhad sells 240,000 stools per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is
a) Asyraf Hadi Sdn Berhad sells 240,000 stools per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be maintained. The carrying cost is RM0.50 per unit annually and the ordering costs are RM180. The delivery time is 10 days. Order should be placed in 100 units and there is 360 days in a year. Compute: i) The economic order quantity. (2 marks) ii) The total cost of holding inventory. (4 marks) iii) The reorder inventory level. (2 marks) iv) The number of orders placed annually. (2 marks)
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