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b. Jubima Jaya sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be
b. Jubima Jaya sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be maintained. The carrying cost is RM0.60 per unit annually and the ordering costs are RM150.00. The delivery time is 10 days. Order should be placed in multiple of 100 units. REQUIRED: i. Compute the economic order quantity (assume 360 days per year). ii. Compute the total inventory cost. iii. Compute the reorder inventory level. iv. Compute the average inventory
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