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of their purchases QUESTION ONE 1.1 [151 -6 A motor parts supplier presents the following data in respect of their purchases: Annual demand Maximum daily

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of their purchases

QUESTION ONE 1.1 [151 -6 A motor parts supplier presents the following data in respect of their purchases: Annual demand Maximum daily requirement Average daily requirement Carrying cost Ordering cost Lead time 318 OOO units 2 700 units 1 590 units R2.70 per units R 60 per order Time needed to acquire emergency supplies 21 days 5 days 1 1.1.3 NB: Assume that sales are even throughout the year. Required: Determine the economic order quantity (EOQ). Determine the ordering point. Calculate the danger level.

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