QUESTION $1$

$1\mathrm{.}1$

$(20$ Marks$)$

REQUIRED

Calculate the number of orders required per year, based on the economic order quantity.

$(4$ marks$)$

INFORMATION

Havana Limited produces a product which has a constant monthly demand of $7500$ units. The product requires a component that is purchased from a supplier at R$100$ per unit. The order cost is R$20$ per order. The holding cost is $10\%$ of the unit purchase price.