A company uses components at a rate of 500 a month which are bought at the cost of $1.2 each from the supplier. It costs $20 each time to place an order, regardless of the quantity ordered. The total holding cost is made up of the capital cost of 10% per annum of the value plus $0.03 per item per annum for insurance plus $0.06 per item per annum for storage plus $0.03 per item for deterioration. Find;
i. EOQ
ii. Frequency of ordering.
Total annual cost of the inventory.
iv. Time between each order

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The detailed answer for the above question is provided below Solution i EOQ stands for Economic Orde... View the full answer