QUESTION TWO a) A company is trying to determine an appropriate inventory policy and has gathered the following information relating to one of the products it sells Actual demand =28,800 tons per year Ordering cost=TZS 1,200 per order Holding cost=TZS 960 per unit per year The current policy is to order in lots of 3,200 REQUIRED: Use the EOQ model to evaluate the current policy and suggest any improvements b) Briefly describe any four factors which should be taken into account in determining the working capital needs of the firm