QUESTION FOUR[20]

Yona Brands enterprises purchases 2000 CD players at R300 each per annum. The CD players are sold evenly throughout the year. The cost of placing a single order R24. The cost of carrying the inventory amounts to R6 per unit

Required:

4.1Calculate the economic order quantity for the year (6)

4.2Calculate the number of orders that should be placed during the year (4)

GTX Limited produces a product which ahs a constant monthly demand of 8000 units. The product requires a component that is purchased from a supplier at R20 per unit. The ordering cost is R1.20 per order. The holding cost is 10% of the unit purchase price

4.3Calculate the economic order quantity for the year.(6)

4.4Calculate the number of orders that should be placed during the year.(4)