Wayne Plc imports one of its products, delivery of which requires a ten day lead time from date of order. The product costs Wayne Plc 20 per kilo. Wayne Plc sells this product to one customer at 32.50 per kilo. Demand from this customer is constant at 2,000 kilos per month. Wayne Plcs cost to place and receive an order for this product is estimated at 1.50 per order, and the holding cost of this stock item is 10% of the overall product cost per annum.

Required: (i) Based on predicted annual demand, calculate each of the following: the Economic Order Quantity (EOQ) the number of orders required per year the average stock carried (assume sales are constant throughout the year) the total annual stock costs, showing separately ordering costs and stockholding costs.