TASK-3

Tim John is the purchasing manager at the headquarters of a multinational fast food chain with a central inventory operation. Tim's fastest-moving inventory item has a demand of 30 units per day. The cost of each unit is $150, and the inventory carrying cost is $5 per unit per year. The average ordering cost is $70 per order. (It is a corporate operation, and there are 300 working days per year)

1. What is the EOQ?

2. What is the average inventory if the EOQ is used?

3. What is the optimal number of orders per year?

4. What is the optimal number of days in between any two orders?

5. What is the annual cost of ordering and holding inventory?

6. What is total inventory management cost?

7. What is total materials cost

8. What is the total annual inventory cost to be recorded in accounts?

Prepare a Schedule of Orders (till the last order is received) if the first order was received on Jan 10, 2020.

Order #	Date of order	Quantity of this order (Units)	Cumulative Quantity (till date) (Units)
1	Jan 10, 2020