Question: PART B ( 1 0 Marks ) Accelerators ( Pty ) Ltd ( Accelerators ) expects an annual demand for Product G of 2 5

PART B (10 Marks)Accelerators (Pty) Ltd (Accelerators) expects an annual demand for Product G of250000 units. Product G is purchased for R12 per unit from the supplier, Clutches(Pty) Ltd.Accelerators places orders of 50000 units of Product G per the entitys policy atregular intervals throughout the financial year. The cost of placing an order is R25 perorder and the storage cost for Product G is 20 cents per unit per financial year.
REQUIRED: Calculate the total annual cost of ordering and holding inventory utilising thecurrent ordering policy of Accelerators (Pty) Ltd.Round to two decimals where applicable.(4 marks)
Calculate the total annual ordering and holding cost should Accelerators (Pty)Ltd implement an Economic order quantity policy.Round to two decimals where applicable.Remember, products (units) are expressed as integers.(6 marks)

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