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Question 3 Tanya would like to send her parents on a cruise for their wedding anniversary. She has priced the cruise at R15 000 and
Question 3 Tanya would like to send her parents on a cruise for their wedding anniversary. She has priced the cruise at R15 000 and she has 5 years to accumulate this money. Calculate how much must Tanya deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise? Question 4 ABC Products uses 800 units of a product per year on a continuous basis. The product has carrying costs of R50 peunit per year and order costs of R300 per order. It takes 30 days to receive a shipment after an order is placed and the firm requires a safety stock of 5 days usage in inventory. (a) Calculate the economic order quantity (EOQ). (b) Determine the reorder point, including the 5 days safety stock
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