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To date, FSM Brothers has been purchasing an item XX in lots of 900 units. This equates to a three-month supply. The cost per unit
To date, FSM Brothers has been purchasing an item XX in lots of 900 units. This equates to a three-month supply. The cost per unit is $12, the order cost is $16 per order, and the carrying cost is 25%. Using an exchange rate of USD1 to a K20.00 How much can FSM Brothers save per year (in Kwacha) by purchasing the item in the most economical quantities? B. Using day to day operations examples, explain why "efficient" is so helpful in supply chain management. C. List and explain two examples of Economic Order Quantity (EOQ) applications in real life business operations. D. Identify and explain two advantages of calculating Economic Order Quantity (EOQ) in a Tea Manufacturing Organization
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