SECTION B

INSTRUCTION: Answer ALL questions

BURLINGTON Ltd forecasts that the demand for next year will be $2000$ units and the ordering costs will be $$100$ per order while the annual cost of storage is $$0\mathrm{.}50$ per unit.

Calculate:

the economic order quantity $($EOQ$)(3$ marks$)$

the number of orders to be made for the year $(2$ marks$)$

the annual ordering cost $(3$ marks$)$

the average inventory level for the optimum order quantity $(2$ marks$)$

the annual cost of storage for the optimum level of inventory $(5$ marks$)$

$(15$ marks$)$

Solve the following using the inverse method

$(2$x&$+3$y&$-$z&$=5$@$-$x&$+2$y&$+3$z&$=3$@x&$-3$y&$-2$z&$=1)$

$(15$ marks$)$