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QUESTION 5: (10 MARKS) A) The Peter equipment company estimates its carrying cost at 15% and its ordering cost at $90 per order. The estimated

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QUESTION 5: (10 MARKS) A) The Peter equipment company estimates its carrying cost at 15% and its ordering cost at $90 per order. The estimated annual requirement is 78,000 units at a price of $40 per unit. (6 Marks) Required: (1). What is the most economical no. of units (EOQ) to order? (ii). No. of orders to be placed in a year. B) Explain the importance of controlling material cost, using EOQ, ABC analysis and JIT tools. (4 Marks) (300 words)

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