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The management of two different sized sachets of maize meal 5kg and 3kg-is entrusted to you. The larger sachet is priced at R45 and the

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The management of two different sized sachets of maize meal 5kg and 3kg-is entrusted to you. The larger sachet is priced at R45 and the smaller one is R30, according to Shoprite your primary supplier. Currently, the promotion for the smaller packet says, "Buy ONE get the second HALF PRICEI" 2.1 Propose which size of Sugar currently gives you the best value for money. (10 marks) 2.2 The annual demand of Maize Meal =750 units (bigger size), Delivered purchase cost =R35/units, Annual carrying cost percentage =25 percent, Order cost = R50/order. The lead time is 10 working days. Assuming 20 working days per month. 2.2.1 Determine the Economic Order Quantity (2 marks) 2.2.2 Determine the reorder point (2 marks) 2.2.3 Determine the average inventory (2 marks) 2.24 Suppose orders are placed only at review time. Find the optimal period and the optimal order quantity. ( 4 marks)

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