Study the scenario provided below and answer all questions that follow. InSight Limited imports reading glasses from China for sale in a Southern African country. During the 2021 financial year, the company adhered to the policy of importing 6 000 pairs of reading glasses every month. The actual monthly sales of reading glasses by InSight Limited during the 2021 financial year is depicted in Table 2.1 below. The company paid R5 000 to place an order for the reading glasses and a carrying cost of R2.00 for each pair of reading glasses during 2021. January 2021

Table 2.1: Actual sales data for the reading glasses during 2021

Month	Actual Sales (Pairs of reading glasses)
Jan 2021	2800
Feb 2021	3000
Mar 2021	5000
Apr 2021	4000
May 2021	5600
June 2021	8000
July 2021	8000
Aug 2021	7900
Sept 2021	6000
Oct 2021	4050
Nov 2021	4900
Dec 2021	550

3.1 Using the actual sales data provided above, determine the economic order quantity (EOQ) of reading glasses for 2021 financial year. (6 marks) 3.2 Using the EOQ model, determine the number of orders for reading glasses placed by InSight Limited during 2021. (3 marks) 3.3 Suppose that the reading glasses arrive at the premises of Insight Limited 7 days after an order has been placed, determine the level at which Insight Limited had to replenish the stock during 2021 (Assume a 350 working days during 2021). (4 marks) 3.4 Determine how much Insight Limited would save by switching from the current ordering policy to the economic order quantity model. (7 marks)