c) Nina gong gong Enterprise has estimated that it requires 50,000 units of tape as an inventory for the year 2018. One unit of tape will be purchased at RM2.20. The supplier will deliver the order 10 days after an order has been placed. Costs per order are estimated at RM100 and carrying cost will be 20 percent of purchase price. Usually the company carries 2,000 units of safety stock. The company works 360 days per year.

a) Nina gong gong Enterprise has estimated that it requires 50,000 units of tape as an inventory for the year 2018. One unit of tape will be purchased at RM2.20. The supplier will deliver the order 10 days after an order has been placed. Costs per order are estimated at RM100 and carrying cost will be 20 percent of purchase price. Usually the company carries 2,000 units of safety stock. The company works 360 days per year.

i. Calculate the EOQ. Order must be placed in 100 units.

ii. How many orders will be placed annually?

iii. Calculate the average inventory

iv. Calculate the Reorder point?

v. Calculate the Total Carrying Cost (TCC)

vi. Calculate the Total Ordering Cost (TOc)

vii. Calculate the Total Inventory Cost (TIC)