. A company makes bicycles. It produces 450 bicycles a month. It buys the tires for bicycles from a supplier at a cost of kshs 40 per tire. The companys inventory carrying cost is estimated to be 15% of cost and the ordering is 100 per order.

(i) Calculate the EOQ

(ii) What is the number of orders per year?

(iii) Compute the average annual ordering cost

4. Compute the average inventory.

What is the average annual carrying cost?