SECTION B

Answer ANY THREE $(3)$ questions in this section.

QUESTION $3$

A company manufactures shoes. It requires $5000$ metres of leather per month. The company buys the leather from a supplier at a cost of R$150$ per metre. The company's inventory carrying cost is estimated to be $\backslash (5\backslash \%\backslash )$ of the metre cost of leather and the ordering cost is R$70$ per order.

$3\mathrm{.}1$ Calculate the EOQ.

$3\mathrm{.}2$ What is the number of orders per year?

$3\mathrm{.}3$ Compute the total cost.

$3\mathrm{.}4$ Provide an evaluation on the assumptions on which the Economic order quantity is based.

QUESTION $4$

You are provided with the following information regarding the sales data of a Manufacturing company.

$4\mathrm{.}1$ Calculate the $3$ month weighted moving averages and deviations.

$4\mathrm{.}2$ Calculate the Mean absolute deviation $($MAD$)$ for the Manufacturing company.