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Miss Winnie is the person in charge for purchasing important material for her organization. She needs to fulfill the monthly demand of 3,500 units. The

Miss Winnie is the person in charge for purchasing important material for her organization. She needs to fulfill the monthly demand of 3,500 units. The cost that involved along the process are setup cost of RM250 per order and the cost for holding the order is RM8.50 per unit and unit cost is RM85 per unit. The order lead time is 12 days. The company is operating for 365 days per year. Analyze all the information so that Miss Winnie can determine the optimum quantity or the economic order quantity for that particular item.

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