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Tom Yum Goong, a Thai restaurant in SS2 Petaling Jaya is trying to identify the optimal order quantity for their special tom yum ingredients. The
Tom Yum Goong, a Thai restaurant in SS2 Petaling Jaya is trying to identify the optimal order quantity for their special tom yum ingredients. The restaurant predicted that it will sell 440,400 bowls every year at an average selling price of RM6 per bowl. They purchase the ingredients directly from a supplier in Thailand at a rate of RM2.50 per bowl. The costs for storing the ingredients are RM1.30 per bowl. Ordering costs are RM300 per order because it has to be transported from Thailand. Required: a. Calculate the EOQ (economic order quantity). (4 marks) b. Calculate the total inventory cost if orders are placed : (1) 1 time 20 times (111) 30 times (iv) 50 times (16 marks) (Total 20: marks)
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