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**PLEASE ANSWER ALL SUB-QUESTIONS AND EXPLAIN STEP BY STEP, PLEASE INCLUDE FORMULAE IN CORRECT FORMAT NOT COMPUTED VERSIONS, PLEASE INCLUDE NOMENCLATURE FOR ALL FORMULAE USED.

**PLEASE ANSWER ALL SUB-QUESTIONS AND EXPLAIN STEP BY STEP, PLEASE INCLUDE FORMULAE IN CORRECT FORMAT NOT COMPUTED VERSIONS, PLEASE INCLUDE NOMENCLATURE FOR ALL FORMULAE USED. THANK YOU FOR THE ASSISTANCE! ** PLEASE ANSWER THE ENTIRE QUESTION UNTIL THE END**

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2.1 Heythere Distributors annual sales amount to 300 000 units. Orders are placed in multiples of 100 units. The purchasing price is R1 per unit. The carrying cost of inventory equals 25% of the purchase price of goods. The ordering cost is R20 per order. Three days are required for delivery. The desired safety stock for the firm is 10 000 units. This amount is on hand. Required: 2.1.1 Calculate the EOQ for Heythere Distributors. 2.1.2 Determine the number of orders to be placed each year. (Assume a 360 day year) 2.1.3 Determine the re-order point for inventory. (5) (4) (4)

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