Question: QUESTION TWO Mulenga Ltd purchases materials for its production line at K900.00 per ton. The company's yearly requirement is 400 tonnes. Inventory carrying costs are

QUESTION TWO Mulenga Ltd purchases materials for its production line at

QUESTION TWO Mulenga Ltd purchases materials for its production line at K900.00 per ton. The company's yearly requirement is 400 tonnes. Inventory carrying costs are calculated at 25% of the average value of inventory, and the cost of placing each order has been set at K80.00. As part of your industrial attachment at Mulenga Ltd you have been assigned to validate the computation of the EOQ in the 1t quarter report for the department in preparation for the audit scheduled to begin in December, 2016. Requirement (a) Calculate the Economic Order Quantity (EOQ) using the details above I5 Marks)

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