Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rondu Sdn . Bhd . is a frozen meat wholesaler. The company is located in an indoor shopping mall that operates 3 0 0 days
Rondu Sdn Bhd is a frozen meat wholesaler. The company is located in an indoor shopping mall that operates days per year. The frozen meat is supplied from vendor who charges RM per carton. The holding cost would be of a carton's unit cost per year. In addition, the vendor charges RM per order to make a delivery to Rondu Sdn Bhd regardless of the number of cartons delivered. Average monthly demand at Rondu Sdn Bhd is cartons. An order from vendor arrives in days when an order is placed.
Note: All answers need to be calculated up to one decimal point.
a Determine the Economic Order Quantity EOQ for frozen meat each time when the order is placed.
marks
b Determine the minimum inventory level in the stock that triggers a new order need to be placed.
marks
c Determine the total annual inventory cost based on EOQ in Question a
marks
d Construct TWO inventory cycles by showing the Economic Ordering Quantity EOQ TimeBetweenOrder TBO Reorder Point ROP and the leadtime for normal order.
marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started