ABC ltd uses 6250 kg of raw material per year. It costs RM10 to hold 1 kg for

One year, and the costs of ordering each consignment of raw materials are

RM200.

ABC ltd uses between 100kg and 600kg a month, and the companys suppliers

Can take between 1 and 3 months to deliver materials that have been ordered.

Calculate the following:

a) The reorder quantity/ EOQ

b) Ordering Cost

c) Holding Cost

d) Total cost of stock

e) Reorder level

f) Maximum stock level

g) Minimum stock level