PLEASE DO NOT USE CHAT GPT OR AI

QUESTION 3:

3.1. The economic order quantity technique is relatively easy to use but is based on several assumptions. Discuss these assumptions

3.2. A toy manufacturing company estimates its carrying cost at 14% and its ordering cost at R10 per order. The estimated annual requirement is 50,000 units at a price of R5 per unit.

3.2.1. What is the most economical number of units to order?

3.2.2. How many orders should be placed in a year?

3.2.3. How often should an order be placed?

PLEASE DO NOT USE CHAT GPT OR AI