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BGW Technologies ( BGW ) stocks a new model of household inverter - generator for the South African market. The following are the details of

BGW Technologies (BGW) stocks a new model of household inverter-generator for the South African market.
The following are the details of BGWs operations in relations to the retail of the inverters during 2023:
Ordering cost is R1,112 per order
Inventory carrying cost is 2% per annum
Cost of an inverter is R20,000
Normal demand is 100 inverters per week
Required:
1.2.1. Calculate the economic order quantity (EOQ).(3marks)
1.2.2. If the supplier is willing to supply quarterly 1,300 units at a discount of 10%, is it worth accepting?

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