Question: A. In the process of finding the optimum order quantity the following costs are obtained Inspection Cost SR 9 per order Q Cost of Interest

A. In the process of finding the optimum order quantity the following costs are obtained Inspection Cost SR 9 per order Q Cost of Interest = SR 8/Unit/year Insurance Cost = 0.5 per unit per month Administration Cost SR 7 per order Q Depreciation Cost SR 2/Unit/year Breakage Cost SR 2/Unit Given that the annual Demand is 100,000. What is Economic Order quantity ? A manufacturer of Golf Cart purchases the seat portion of the stroller from a supplier who lists these prices : less 1,000 seats, SR 10 each: 1000 to 3999,7 each: 4000 to 5999, SR 5 each: and 6000 or more SR 4 each. Ordering costs are SR 50 and the annual usage is 6000 seats. Determine an order quantity which will minimize total cost under the following situation: a. If the annual carrying cost is 20 percent of the purchase price?(10 points) b. b. If the annual carrying cost is SR 3 per seat? (10 points)

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