Answer ALL questions in this paper.

QUESTION $1$

$[100$ MARKS$]$

$(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Use the information given below to determine the number of orders that should be placed for the year, based on the economic order quantity.

INFORMATION

Sentinel Traders sells a product which has a steady monthly demand of $12000$ units. The product is purchased from a supplier at R$50$ per unit. The ordering cost is R$6$ per order. The holding cost is $5\mathrm{.}4\%$ of the unit purchase price.

$(4$ marks$)$