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Given the following inventory information and relationships for the MK Corporation: 1. Orders can be placed only in multiples of 100 units 2. Annual unit
Given the following inventory information and relationships for the MK Corporation: 1. Orders can be placed only in multiples of 100 units 2. Annual unit usage is 300,000 . (Assume a 50-week in your calculation) 3. The carrying cost is RM30 per unit 4. The purchase price is RM10 per unit 5. The ordering cost is RM50 per order 6. The desired safety stock is 10,000 units. 7. Delivery time is 2 week. Given this information: a. What is the optimal EOQ level? b. What is the total cost at EOQ level c. How many orders will be placed annually? d. At what inventory level should a reorder be made? (25 marks)
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