Question: Problem Solving: EOQ & POQ PROBLEM 1 (18 MARKS) A Hardware Shop in Subang Jaya sells 2,500 brackets in a year and the sales is

Problem Solving: EOQ & POQ PROBLEM 1 (18 MARKS) A Hardware Shop in Subang Jaya sells 2,500 brackets in a year and the sales is relatively constant throughout the year. These brackets are purchased from a supplier from Ipoh for RM15.00 each, and the lead time is two days. The holding cost per bracket per year is RM1.50 (or 10% of the unit cost) and the ordering cost per order is RM18.75. There are 250 working days per year. 1. What is the EOQ? (2) 2. Given the EOQ, what is the average inventory? What is the annual inventory cost? (5) 3. In minimising the cost, how many orders would be made each year? What would be the annual ordering cost. (5) 4. Given the EOQ. what is the total annual inventory cost (including purchase cost)? (2) 5. What is the time between orders? (2) 6. What is the ROP? (2)

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