Suppose you are appointed as a purchasing officer of a small business - You are asked to manage the purchases of NIDO (p

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Suppose you are appointed as a purchasing officer of a small
business - You are asked to manage the purchases of NIDO
(powder milk).
The annual demand = 1500 units of NIDO,
Delivered purchase cost = R25/units,
Annual carrying cost percentage= 15percent,
Order cost = R35/order.
The lead time is 10 working days. Assuming 20 working days per
month.
2.1 Determine the Economic Order Quantity (4 marks)
2.2 Determine the reorder point (4 marks)
2.3 Determine the average inventory (4 marks)
2.4 Suppose orders are placed only at review time. Find the
optimal period and the optimal order quantity.