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Question 4: (40 marks) The following represent four independent situations from which one amount is missing. Products/ ases Annual Quantity Carrying (Holding) Cost/Unit Ordering Cost/Order

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Question 4: (40 marks) The following represent four independent situations from which one amount is missing. Products/ ases Annual Quantity Carrying (Holding) Cost/Unit Ordering Cost/Order EOQ A 4,500 SI S? 300 B S30 S10 80 . 3.600 $0.12 S6 ? D 3,500 S? S5 125 Required: 1- Calculate the missing figures for each of the four products. (12 marks) 2-Using the EOQ figures , calculate the number of orders that will be placed each year for each of the products (12 marks) 3-Give examples of costs included in annual carrying (holding) costs of stock. (6 marks) 4-Currently the company purchases product C for $5 per unit. The company has been offered a 1 per cent discount on the cost of product C if it places orders in quantities of 1,200. Show the total cost at each of the EOQ & discount. What decision should the company take and why? ( 10 marks)

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