Question $4$

A company uses $5000$ items per annum which has a price of $$2$ each. The ordering costs are $$150$ per order and holding costs are $$1\mathrm{.}50$ per item per annum

A$.$ Calculate the EOQ

B$.$ Using the EOQ as the number of items ordered, calculate the:

$1.$ Number of orders per annum

ii$.$

Average stock

Annual stock holding cost

iv$.$ Annual order cost

V$.$ Total annual inventory cost

vi$.$

Total annual cost of items and inventory

$(3$ marks$)$

$(1$ mark$)$

$(1$ mark$)$

$(2$ marks$)$

$(2$ marks$)$

$(2$ marks$)$

$(2$ marks$)$

$11$:$00)$ for order of $5000$ and