Answered step by step
Verified Expert Solution
Question
1 Approved Answer
C. Tarisha Ice Lollies company uses 60,000 litres of Orange juice per year. The cost of ordering the juice is R200 per order. The cost
C. Tarisha Ice Lollies company uses 60,000 litres of Orange juice per year. The cost of ordering the juice is R200 per order. The cost of carrying the juice in inventory is R1 per litre per year. The company uses the juice at a constant rate every day throughout the year. i. Calculate the Economic order Quantity? (4 Marks) ii. Assuming that it takes 20 days to receive an order once it has been placed, determine the reorder point in terms of the litres of juice. (8 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started