QUESTION $1$

$(20$ MARKS$)$

$1\mathrm{.}1$

REQUIRED

Calculate the Economic Order Quantity $($EOQ$)$ from the information provided below.

$(4$ marks$)$

INFORMATION

The following details have been supplied by Amber Limited for one of its products:

The monthly sales are $75000$ units. The product is purchased at R$10\mathrm{.}80$ per unit and the holding cost is $10\%$ of the purchase price. It costs R$15$ to place an order for the product.