1. A manufacturer has to supply his customers with 1200 units of his product per annum. The inventory carrying cost amounts to ₤ 1.2 per unit. The set-up cost per run is ₤ 160. 
2. 
   
3. Find:
4. 1 EOQ 
5. 2 Minimum average yearly cost 
6. 3 Optimum no of orders per year and days 
7. 4 The optimum time between orders (optimum period of supply per optimum order)