Question
In April 2022, the Malaysian government decided to re-implement the full face-to-face schooling system in all schools in Malaysia as the rate of Covid-19 infection
In April 2022, the Malaysian government decided to re-implement the full face-to-face schooling system in all schools in Malaysia as the rate of Covid-19 infection is now under control. As a result, the following changes are expected: - Annual tablet computer sales are expected to decline to 15,000 units per year. - The carrying cost has increased to 6% of the purchase price. - The purchase price increased to RM170/unit due to the increase in the cost of production of tablet computers and also as a result of the increase in costs related to logistics. - The current order cost is RM50/order. - The security stock is now reduced to 50 units due to the decrease in sales volume. - The current delivery time period is for 5 days.
Based on the above information and assuming there are 365 days in a year: i. Determine the level of Economic Order Quantity (EOQ) . (3 marks) ii. How many orders does government need to make in a year? (2 marks) iii. Determine the inventory order point. (4 marks) iv. Determine the average inventory level. (3 marks) v. Calculate the total inventory cost. (2 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