QUESTION 3 a) Danial Steel Corp. buys inventory of 40,000 units annually. The purchase price per unit is RM3.00 and deli

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Question 3 A Danial Steel Corp Buys Inventory Of 40 000 Units Annually The Purchase Price Per Unit Is Rm3 00 And Deli 1 (31.08 KiB) Viewed 33 times

QUESTION 3 a) Danial Steel Corp. buys inventory of 40,000 units annually. The purchase price per unit is RM3.00 and delivery time takes 2 weeks after the order is placed. The ordering cost is RM 40 per order. The storing and insurance cost of the inventory per quarter is 20 percent of the purchase price. Based on the sales records, it normally maintains its safety stock of 4,500 units. Order should be placed in 100 units and 50 weeks is in a year. Calculate: i) the economic order quantity. ii) the total cost of holding inventory. iii) the inventory level should reorder be made. iv) the number of orders that will be placed annually. (2.5 marks) (4 marks) (2 marks) (1.5 marks)