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HITL Sdn Bhd anticipates sales of 25,000 units of laptops in the year. Ordering cost is RM20.00 per order, and carrying cost is RM4.00
HITL Sdn Bhd anticipates sales of 25,000 units of laptops in the year. Ordering cost is RM20.00 per order, and carrying cost is RM4.00 per unit. Required: a) What is the Economic Order Quantity (EOQ)? (Show your calculations clearly) b) Based on the EOQ, how many orders will be placed in the year? (Show you calculations clearly) c) Calculate the average inventory. (Show your calculations clearly) d) What is the total inventory handling costs? (Show your calculations clearly) [3 marks] [2 marks] [2 marks] [5 marks] e) How many days would it take to sell off one batch of EOQ stock, based on 365 days a year? (Show your calculations clearly. Round up your figure to the nearest whole number) [4 marks] f) If, from the date of order, it takes one week (3 days) for new stock to arrive, what is your stock order point? (Show your calculations clearly. Round off your figure to the nearest whole number) [4 marks] Total: [20 marks]
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