Nev Mac Enterprise sells a product that costs $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The EOQ model is appropriate. i) Determine the highest number of units that should be purchased by the business. 

ii) What is the number of orders to be placed each year for this product? 

iii) Compute the average annual ordering cost.

iv) Compute the average annual carrying cost. 

v ) What is the cost-minimizing solution for this product each year in total stock administration costs? 

Answer rating: 100% (QA)

i Highest no of units that should be purchased EOQ ... View the full answer