Question: (a) Explain the Economic Order Quantity Model (EOQ). Use the EOQ graph model to explain. (7 marks) (b) The sales of Vintage Company is 50,000

(a) Explain the Economic Order Quantity Model

(a) Explain the Economic Order Quantity Model (EOQ). Use the EOQ graph model to explain. (7 marks) (b) The sales of Vintage Company is 50,000 units per year. The percentage of storage is 20 percent of inventory value. The purchase price is RM15 per unit and the ordering cost for each order is RM1,500. Lead time is 2 weeks. (Assume that there are 52 weeks in your calculation) i Calculate the EOQ. (3 marks) ii. Total Carrying Cost (TCC) (3 marks) iii. Total Ordering Cost (TOC) (3 marks) iv. Total Inventory Cost (TIC) (3 marks) v. How many orders will be placed annually? (3 marks) vi. What is the Reorder point

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