Answer Happy

Keto Foods is a shop/restaurant that cater to peoplewho are on diet by preparing their meal according to the requiredcalaries to attain a particular weight. Ms Therese is the managerof this shop/restaurant and takes charge also of the supplies andraw materials. Monthly, they will need 300 food boxes whose priceis BD 0.150. Ms Therese continuous to order 4x in a year with aquantity of 900 boxes per order. The cost of ordering from supplieris Bd 10.50 while the cost to keep the boxes in good condition isBD 2.5.
Ms. Ulah, who is the the newly hired Supply Chain Head objectsthe practice that is being done by Ms Therese when it comes toordering the food boxes. Ms. Ulah is suggesting to use the economicorder quantity as per inventory model to reduce the cost.
Questions.
1- What is the total cost if the practice which Ms Therese wantswill be followed? ( C8)
Total Cost = 3 pts
2- Compare the Frequency of Order and Length of Cycle using MsTherese and Ms Ulah’s approaches to this inventory. ( C8)
Frequency of Order = 3 pts , Length of Cycle = 3 pts , Total Pts= 12 pts
3- Will you agree with the suggestion of Ms. Ulah ? Prove youranswer. ( C4 )
EOQ = 2 pts, Total Cost = 3 pts
4- Which approach will you finally recommend to be used by KetoFoods? Explain your answer. ( C4 )
5 pts