QUESTION $5$

$(20$ Marks$)$

Barloworld Logistics is a South African$-$based supply chain and logistics company that provides imegrated solutions to optimise the fow of goods and materials for businesses across various industries. Part of the larger Barloworld Gcoup. Barloworld Logistics operates across multiplo Alrican countries, as well as in parts of the Middle East, Europe, and Asia. The following data has been provided relating to one of the essential supplies that are ublised for Barloworld Logistics operations. Usage is approximately $10$ brackets per day during the year. The brackets are purchased from a supplier $90$ km away and the costs incurred include holding costs per bracket per year of R$1.50,$ and order cost per order of R$18\mathrm{.}75.$ The lead time is $2$ days and working days per year is $250$ days. Advise the management on the following inventory management issues.

$5\mathrm{.}1$ Using the proviged information determine the following.

$(14$ Marks$)$

Economic order quantity.

The annual inventory holding costs.

How many corders would be made each year?

What would be the annual order cost?

What is the time between ordors and the reorder point $($ROP$)?$