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po Part 2: Problems Question 1 a company operates a medium size warehouse where it stocks FMCG items. Wages for the purchasing department are R36

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po Part 2: Problems Question 1 a company operates a medium size warehouse where it stocks FMCG items. Wages for the purchasing department are R36 000, purchasing expenses are R25 000. It costs the company R25,00 to place an order. The cost of financing the inventory is 12% and the storage costs are estimated to be 8% with risk costs at 6%. The average inventory is R275 000, and 5 000 orders are placed each year. (9) 37500 Determine (separately) the ordering and carrying costs for this inventory. What are the total costs? What actions could the company take to reduce these costs? Annual demand

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