$2\mathrm{.}2$

REQUIRED

Use the information given below to calculate the following:

$2\mathrm{.}2\mathrm{.}1$

Economic Order Quantity

$(4$ marks$)$

$2\mathrm{.}2\mathrm{.}2$

Re$-$order point.

$(3$ marks$)$

INFORMATION

The following details have been supplied by Tonga Suppliers for the only product that it sells:

Sales per month

$3000$ units

Carrying costs as a percentage of the unit purchase price

$10\%$

Purchase price per unit

R$50$

Cost of placing an order

R$25$

The time that elapses between placing an order and the receipt of the products

$12$ days

Number of days that Tonga Suppliers operates in a year

$240$ days