Question: 2, Calculation Questions. A company is presently ordering based on an Economic Order Quantity (EOQ). The demand is 10,000 units a year, unit cost

2, Calculation Questions. A company is presently ordering based on an Economic

2, Calculation Questions. A company is presently ordering based on an Economic Order Quantity (EOQ). The demand is 10,000 units a year, unit cost is $10, the ordering cost is $30, and the cost of carrying inventory is 20%.? Write the answer in the table for EOQ, All the following on annual basis; Average Inventory, Purchase Cost, Carrying Inventory cost, Order cost and write down the calculation procedures too. Questions in Italics are worth 3 points each, and the rest are worth 2 points each. 30 marks in total - 18 marks for answers and 12 marks for procedures Unit Price Lot Size ($) EOQ (units) Average Inventory (units) Number of orders per year Purchase Cost ($) Carrying inventory Cost ($) Ordering cost Total Cost Answer Marks Show Procedure for calculation of EOQ (6 Marks) 3 3 3 3 3 3

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