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Question 3 Thenjiwe Phangiso is the purchasing agent for Mosesadi. Inc. Mosesadi sells weight loss devices. One of the most popular devices is the
Question 3 Thenjiwe Phangiso is the purchasing agent for Mosesadi. Inc. Mosesadi sells weight loss devices. One of the most popular devices is the tummy tucker, which has an annual demand of 4,000 units. The cost of each tummy tucker is R90, and the inventory carrying cost is estimated to be 10% of the cost of each tummy tucker. Thenjiwe has made a study of the costs involved in placing an order for any of the tummy tucker's that Mosesadi stocks, and she has concluded that the average ordering cost is R25 per order. Furthermore, it takes about two weeks for an order to arrive from the supplier, and during 3 Sem 2- IAC2601 Major Test 3 Assessment 7 2022-Sem 2 this time, the demand per week for tummy tucker is approximately 80. a. What is the EOQ? (3 Marks) b. What is the ROP? (3 Marks) C What is the average Inventory? (3 Marks) d. What is the Total Holding Cost? (3 Marks) e. What is the Number of Orders per Year? (3 Marks) f. What is the Total ordering cost (3 Marks)
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