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A motor parts supplier presents the following data in respect of their purchases: Annual demand Maximum dally requirement Average daily requirement Cariying cost Ordering cost
A motor parts supplier presents the following data in respect of their purchases: Annual demand Maximum dally requirement Average daily requirement Cariying cost Ordering cost Lead time Time needed to acquire emergency supplies 212000 units 1800 unils 1060 units R1, 80 per unit R 40 per order 14 days 3 days NB: Assume that sales are even throughout the year. Required: 1.1.1 Determine the economic order quantity (EOQ). 1.1.2 Determine the ordering point. 1.1.3 Calculate the danger level
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