question archive The following inventory data has been established for company XYZ
The following inventory data has been established for company XYZ
Subject:FinancePrice: Bought3
The following inventory data has been established for company XYZ.Orders must be placed in multiples of 100 unitsAnnual sales are 338, 000 unitsPurchase price per unit is P3Carrying cost is 20% of the purchase price of goodsCost per order placed is P24Desired safety stock 14,000 units, this amount is not on hand initially.Two weeks are required for deliveryTo minimised total inventory costs how many units should be ordered each time the company runs out of stock?At what inventory level should a reorder be madeHow may orders should the firm place each year?Calculate total inventory costs given the following order quantities. (1) 4,000 units, (2) 4,800 units or (3) 6,000. Compare these costs with the total costs incurred using EOQ.
