***PLEASE ANSWER ALL SUB-QUESTIONS AND EXPLAIN STEP BY STEP, PLEASE INCLUDE FORMULAE IN CORRECT FORMAT NOT COMPUTED VERSIONS, PLEASE INCLUDE NOMENCLATURE FOR ALL FORMULAE USED. THANK YOU FOR THE ASSISTANCE! ** PLEASE ANSWER THE ENTIRE QUESTION UNTIL THE END****

QUESTION ONE [25] A salon shampoo supplier presents the following data in respect of their purchases: Annual demand 200 000 units Maximum daily requirement 1 500 units Average daily requirement 1 050 units Carrying cost R 1, 50 per unit Ordering cost R 40 per order Lead time 12 days Time needed to acquire emergency supplies 3 days NB: Assume that sales are even throughout the year. 1.1.1 Determine the economic order quantity (EOQ). (7) 1.1.2 Determine the ordering point. (5) 1.1.3 Calculate the danger level. (5) 1.1.4 Discuss the assumptions made by the EOQ model. (8)