Majan Distribution company is a distributor of consumer goods located in Sur, Oman. They work with hundreds of manufacturers that provide them with products that they in turn sell to their thousands of customers. There is a need for material control which may have an impact on the profit if there is any savings in the material usage. It aims at efficient purchase, storage, and consumption of materials. The stores ledger has the following information: Rate of usage per month is 60 units. Company estimated inventory carrying cost per unit at RO 150 per annum. The ordering cost for 10 order is RO 2,500. The cost incurred for purchasing is RO 180. The normal rate of consumption per month is 60 units, and Maximum rate of usage is 80 units per month. For emergency purchase the re-order period 3 months, and re-order period for supply of material is 2 to 6 months. Majan Distribution company has appointed you as an accountant and request you to determine: Calculate the following: (20 Marks)

f. Economic Order Quantity

g. Economic Order Frequency

h. Number of orders per year

i. Total annual ordering and carrying cost at EOQ