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Question 2 Khumo an aspiring Industrial engineer is in charge of purchasing at a hardware store. Khumo has determined that the annual demand for
Question 2 Khumo an aspiring Industrial engineer is in charge of purchasing at a hardware store. Khumo has determined that the annual demand for generators has gone up to 100,000 units due to Eskom load shedding. She estimates that it costs R10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on. Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. a. Calculate the economic Order Quantity (3 Marks) b. Calculate the Number of Orders per year (3Marks c. Calculate the Total Ordering cost (3 Marks) d. Calculate the average Inventory (3 Marks) e. Calculate the Total Holding Cost (3 Marks)
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