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Question 4 Study the information provided below and answer the questions that follow. The aggregate demand for a South African lawnmower brand across the
Question 4 Study the information provided below and answer the questions that follow. The aggregate demand for a South African lawnmower brand across the outlets of a popular retailer was 3 200 units per quarter during the 2020 financial year. The retailer incurred a fixed cost of R150 per order and annual holding costs per lawnmower of R5. In general, the lawnmowers are delivered to the retailer 3 days after orders are placed. Assume a 300working day for the 2020 financial year. REQUIRED: Using the information provided above, answer the following questions: 4.1 4.2 (5 marks) Determine the economic order quantity of the lawnmowers for the 2020 financial year. Calculate the number of orders placed for the lawnmower by the retailer during the 2020 financial (3 marks) year. 4.3 43 Calculate the re-order point (in units) of the lawnmower at the retailer during the 2020 financial year. (4 marks) 4.4 Calculate the total holding costs of the lawnmowers by the retailers during the 2020 financial year. (4 marks) 4.5 Calculate the total ordering costs of the lawnmowers by the Game store during the 2020 financial year. (4 marks)
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