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answers please (b) Damu Limited is reviewing its inventory control policy with regard to materials. You are told that the cost of making one order
answers please
(b) Damu Limited is reviewing its inventory control policy with regard to materials. You are told that the cost of making one order is K100, the cost of holding one kilogram for one year is K0.25 and the annual demand for materials is 80 000 kilos. There is neither lead time nor buffer inventory. (i) Determine the Economic order quantity (EOQ) Calculate the annual holding costs and annual ordering costs using the EOQ. (Show the formula in each part)Step by Step Solution
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