Question
QUESTION 2 (20 MARKS) The management of two different sized sachets of maze meal5 kg and 3 kgis entrusted to you. The larger sachet is
QUESTION 2 (20 MARKS) The management of two different sized sachets of maze meal5 kg and 3 kgis entrusted to you. The larger sachet is priced at R45 and the smaller one is R30, according to Shoprite your primary supplier. Currently, the promotion for the smaller packet says, "Buy ONE get the second HALF PRICE!" 2.1 Propose which size of Sugar currenty gives you the best value formoney. (10 marks) 2.2 The annual demand of Maize Meal = 750 units (bigger sze), Delivered purchase cost = R35/units, Annual carryng cost percentage= 25 percent, Order cost = R50/order. The lead time s 10 working days. Assuming 20 working days per month. 2.2.1 Determine the Economic Order Quantity (2 marks) 2.2.2 Determine the reorder point (2 marks) 2.2.3 Determine the average inventory (2 marks) 2.2.4 Suppose orders are placed only at review time. Find the optimal period and the optimal order quantity.(4 marks)
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