Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A salon shampoo supplier presents the following data in respect of their purchases: table [ [ Annual demand, 2 0 0 0 0 0

image text in transcribed
A salon shampoo supplier presents the following data in respect of their purchases:
\table[[Annual demand,200000 units],[Maximum daily requirement,1500 units],[Average daily requirement,1050 units],[Carrying cost,R 1,50 per unit],[Ordering cost,R 40 per order],[Lead time,12 days],[Time needed to acquire emergency supplies,3 days]]
NB: Assume that sales are even throughout the year.
1.1.1 Determine the economic order quantity (EOQ).
1.1.2 Determine the ordering point.
1.1.3 Calculate the danger level.
(5)
1.1.4 Discuss the assumptions made by the EOQ model.
(5)
(5)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay

5th edition

1259631125, 978-1259631122

More Books

Students also viewed these Accounting questions