Question: Need complete answer with all steps and 100% accuracy Question 3a An aircraft company uses rivets at an approximately constant rate of 5000kg per year.

Need complete answer with all steps and 100% accuracy

Question 3a An aircraft company uses rivets at an approximately constant rate of 5000kg per year. The rivets acquisition cost Rs 20 per kg and the company personnel estimate that it costs Rs 200 to place an order and the carrying cost of inventory is 10% of the acquisition cost per year. a) How frequently should orders for rivets be placed and what quantities should be ordered for? What is the total annual material cost? 0d=1000, Tsc=2000 b) If the actual costs were Rs 500 to place an order and 15% for carrying cost, the optimal policy would change. What are the new EOQ \& the corresponding total cost? Sod, 1240.44,2177,923

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