Question: 1.2. When is a production order quantity model applicable? 1.3 Managing service inventories require techniques such as effective control of all goods leaving the facility.

1.2. When is a production order quantity model

1.2. When is a production order quantity model applicable? 1.3 Managing service inventories require techniques such as effective control of all goods leaving the facility. Explain how goods leaving the facilites can be controlled in stores liken Checkers, Game of Makro. 1.4 A supplier of car parts produces components at a rate of BD units per day. The demand has been constant for some time now, and one of their customer requires that 15000 units be shipped to them annualy (of 300 working days). Holding costs are R66 per unit per year, and setup costs are R100 per order. 1.4.1 Calculate the arder quantity. 1.4.2 How many setups will be made per year? 1.4.3. What will the average inventory level be in the company? 1.4.4 What is the annual cost of setting up and holding inventory? QUESTION 2 2.1 What are the benefits of an MRP system? 2.2 Describe enterprise resource planning (ERP). 2.3 Categorise the following twelve (12) tems at Nandos using the ABC analysis of inventory, Show full calculations

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