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ECTION B: Answer ALL. (35 Marks) - show all calculations 1. Sibu Corporation is trying to decide between two alternate Order Plans for its inventory
ECTION B: Answer ALL. (35 Marks) - show all calculations 1. Sibu Corporation is trying to decide between two alternate Order Plans for its inventory of a Product X. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan 1st, Sibu Corporation would use a teletype for ordering; order costs would be RM 40 per order. Inventory holding costs (carrying cost) would be RM100 per unit per annum. Under Plan 2nd order costs would be RM30 per order. And holding costs would 20% and unit Cost is RM480. Required: Compute EOQ and Total Inventory Cost, and then decide which Plan would result in the lowest total inventory cost? (10 Marks)
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