Felix Berhad is a manufacturing bicycle company in Penang. It produces 450 cycles a month. It buys the tires from a supplier at a cost of INR 1,750 per tire. The company’s inventory carrying cost is estimated to be 15% of the cost and the ordering is RM 50 per order.

a) Calculate the EOQ.

b) What is the number of orders per year?

c) Computer the average annual ordering cost.

d) Computer the average inventory.

e) Compute average carrying cost?

f ) Commute the total cost.

Answer rating: 100% (QA)

Answer a The Economic Order Quantity EOQ formula is as follows EOQ 2 Demand Order CostInventory Carr... View the full answer