Answer ALL questions.

$(100$ MARKS$)$

QUESTION $1$

$(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Calculate the number of orders that should be placed based on the quantity that will keep the cost of placing the orders and the holding costs at a minimum.

$(4$ marks$)$

INFORMATION

The following information was supplied by KL$.$ Suppliers for the only product that it sells:

$\backslash$table$[[$Monthly demand,$300$ units$],[$Unit cost$,$R$20],[$Fixed cost per order,R$25],[$Carrying cost per unit,$10\%$ of the unit cost$],[$EOQ$,300$ units$]]$