Please Answer the Following question as soon as possible. Subject: Operations Research:

Unit $2$: Inventory Control Models

Question $3$

Fortis Utility Company uses $2000$ units per year which it stores at $$0\mathrm{.}50$ per unit per annum. The

cost to place an order is $$100.$

A$.$ Calculate:

i$.$ The economic order quantity $($EOQ$)$

ii$.$ The number of orders.

B$.$ If the company decides to make the items on its own machine with a potential capacity of $4000$

units per year, calculate:

i$.$ The batch order quantity $($BOQ$)$

ii$.$ The annual ordering cost

iii. The annual carrying cost