The following details are available on a raw material frequently used by BHGK LTD in production process: Consumption of materials per week .5000 kgs per week week of 5 working days) Cost of placing an order . K80 Price per kg. K 30 Storage and carrying cost.8%

REQUIRED: I.Calculate the Economic Order Quantity (EOQ) using the appropriate formula (2 marks) ii.Calculate the number of orders to be placed in a year (3marks) iii.In relation to EOQ, briefly explain the behavior of Ordering Costs and Storage / \carrying costs. (4 marks)