Please provide answers for Questions

3.1 , 3.2 , 3.3 , and 3.4

Section B [60 marks] QUESTION 3 (20 marks) Study the scenario provided below and answer all questions that follow. InSight Limited imports reading glasses from China for sale in a Southem Atrican country. During the 2021 financial year, the company adhered to the policy of imporfing 6000 pairs of read ing glasses every month. The actual monthly sales of reading glasses by InSight Limited during the 2021 financial year is depicted in Table 2.1 below. The company paid R5 000 to place an order for the reading glasses and a carrying cost of R2.00 for each pair of reading glasses during 2021. January 2021 Table 2.1: Actual sales data for the reading glasses during 2021 3.1 Using the actual sales data provided above, detemine the economic order quantity (EOQ) of reading glasses for 2021 financial year. (6 marks) 3.2 Using the EOQ model, determine the number of orders for reading glasses placed by InSight Limited during 2021. 3.3 Suppose that the reading glasses arive at the premises of Insight Limited 7 days after an order has been placed, determine the level at which Insight Limited had to replenish the stock during 2021 (Assume a 350 working days during 2021). 3.4 Determine how much Insight Limited would save by switching from the current ordering policy to te economic order quantity model. (7 marks)