Question 4 Juicy Patties uses 3,500 units of flour mix per year which it stores at $0.70 per unit The cost to place an order is $100. a. b. Calculate: i. The economic order quantity (EOQ) ii. The number of orders per annum. (9 marks) If the company decides to make the flour mix on its own machine with a potential capacity of 4,000 units per year, calculate: i. the batch order quantity (BOQ) ii. the annual ordering cost iii. the annual carrying cost (16 marks) (Total 25 marks)

Question 4 Juicy Patties uses 3,500 units of flour mix per year which it stores at $0.70 per unit per annum. The cost to place an order is $100. a. Calculate: i. The economic order quantity (EOQ) ii. The number of orders (9 marks) b. If the company decides to make the flour mix on its own machine with a potential capacity of 4,000 units per year, calculate: i. the batch order quantity (BOQ) ii. the annual ordering cost iii. the annual carrying cost (16 marks) (Total 25 marks)