The following info pertains to ABC Co:

Order must be placed in multiple of 100.

Annual Requirements 300,000 units

Price Rs 3/- per unit

Cc 25%

Cost per order placed Rs 20/-

Safety Stoc 500 units

3 days required for delivery

1.Calculate EOQ. Also prove EOQ

2.How many orders should co place each year based on EOQ

3.What will be total Ordering Cost

At what inventory level should co placed new order