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Wangi Sdn Bhd has estimated that 1,500 units of soaps will be demanded monthly for next year. The retail price per unit is RM2 and
Wangi Sdn Bhd has estimated that 1,500 units of soaps will be demanded monthly for next year. The retail price per unit is RM2 and one week is required for delivery. Historically the carrying cost per unit is 25% of the selling price and the cost of placing an order is RM50. The desired safety stock is 2,400 units and orders must be in multiples of 100 units. Assume 50 weeks in one year. a) Calculate the optimal EOQ level. (3 marks) b) Calculate the reorder level. (3 marks) c) Calculate total inventory cost. (4 marks)
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