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QUESTION 2 Annual demand Number of orders placed during the year Cost of placing an order Carrying cost per unit per annum 10,000 units 20 S150 :$25 (a) You are required to compute (i) The Economic Order Quantity (EOQ) (ii) The Total cost under the Existing Purchase Policy (iii) Total cost under EOQ Policy (iv) The amount of Savings, if EOQ Policy is adopted (v) The Re-order Point, if the goods can be purchased and received in 10 days. Assume 365 days) (b) Outline the various assumptions of Economic Order Quantity