QUESTION TWO

$[25]$

$2\mathrm{.}1$ Heythere Distributors annual sales amount to $300000$ units. Orders are placed in multiples of $100$ units. The purchasing price is R$1$ per unit. The carrying cost of inventory equals $25\%$ of the purchase price of goods. The ordering cost is R$20$ per order. Three days are required for delivery. The desired safety stock for the firm is $10000$ units. This amount is on hand.

Required:

$2\mathrm{.}1\mathrm{.}1$ Calculate the EOQ for Heythere Distributors.

$2\mathrm{.}1\mathrm{.}2$ Determine the number of orders to be placed each year. $($Assume a $360$ day year$)$

$(5)$

$2\mathrm{.}1\mathrm{.}3$ Determine the re$-$order point for inventory.

$(4)$

$(4)$