Question
QUESTION ONE [25] 1.1. A meatal supplier presents the following data in respect of their purchases: Annual demand 212 000 units Maximum daily requirement 1
QUESTION ONE [25] 1.1. A meatal supplier presents the following data in respect of their purchases: Annual demand 212 000 units Maximum daily requirement 1 800 units Average daily requirement 1 060 units Carrying cost R 1, 80 per unit Ordering cost R 40 per order Lead time 14 days Time needed to acquire emergency supplies 3 days Note: Assume that sales are even throughout the year. You are required to calculate: 1.1.1. Economic order quantity. (5) 1.1.2. Ordering point. (4) 1.1.3. Danger level. (4) 1.2. Keez Ltd are offered terms of 1,5/10 net 30. If the embedded discount is not taken, then the full amount becomes due. Calculate the cost of forgoing the discount. (4) 1.3. Qued Ltd factors all its accounts receivables. The factoring agreement they have concluded is that a 10% reserve is held and a 3% commission is charged on the book value of the account. Further interest is charged at 2% per month (60% per annum) on advances. Qued Ltd wants to factor an account of R8 000 that falls due in 30 days. 1.3.1. Calculate the advance that Qued Ltd will receive. (5) 1.3.2. Calculate the net cost to Qued Ltd. (3
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