Activity 1 Mark Co Ltd sells food and beverage plastic containers. Their merchandise is supplied by Tapau Ltd at RM20 per box. Freight cost is paid by Tapau Ltd. Total stock needed is 20,800 boxes per year or 200 boxes per week. Capital cost (interest rate) for Mark Ltd is 12%. Lead time of purchase order is 2 weeks. Cost of every purchase order is RM125.00. The storage cost per box includes capital cost of and cost of insurance, material handling and damages of RM5.60. EOQ = (2DP/C) = Total cost = (DP/K) + (KC/2) = Number of order = (D/K) =