$2\mathrm{.}2$

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