3.2 Sadida (Pty) Ltd sells different grades of cheese to the general public as well as to other retailers. The company h

[answerhappygod]

3.2 Sadida (Pty) Ltd sells different grades of cheese to thegeneral public as well as to other retailers. The company hired youas its management accountant two months ago. Recently, you havebeen tasked with instituting measures to reduce the company’srapidly increasing costs. After some research, you have come to therealization that the company does not make use of Economic OrderQuantity (EOQ) and you believe that this will be a good place tostart your cost-reduction journey.
You have therefore rounded up the following informationregarding one of its products:
Weekly demand 2 650 units
Purchase price per unit R180
Cost of placing an order R230
Insurance 10% of the purchase price
Direct stockholding costs R17 per unit
Lead time 2 weeks
Safety inventory 1 week’s demand
Required: 3.2.1 Calculate the economic order quantity for thecompany. Note: round off your answer to the nearest whole number.(5 marks)
3.2.2 Calculate the total ordering cost for the company. Note:Round off your calculations to the nearest whole number. (4marks)
3.2.3 Calculate the reorder point for the company (4 marks)