Logistics and supply chain Managment

Consider the following scenario then answer the questions that follow: EOQ: Economic Order Quantity (EOQ) is derived from a formula that consists of annual demand, holding cost, and order cost and aims at striking a balance between the amount you sell and the amount you spend to manage your inventory. Spark logistics is a manufacturing organisation for electronic components that requested you to calculate three EOQ's based on the following information: Chips costs are: Question 6 6.1 Evaluate and analyse the three EOQ's and determine whether it will be a feasible solution based on your answer. (15 Marks) 6.2 Evaluate the total annual inventory costs for the R3.50 and R3.25 chips. (7 Marks) 6.3 Analyse your findings with regards to the lowest cost order policy