Question: ULTK ltd uses the EOQ inventory management model and and purchases 6 4 0 0 0 units of raw materials per year. The purchase price

ULTK ltd uses the EOQ inventory management model and and purchases 64000 units of raw materials per year. The purchase price of the raw materials is R100 per unit . The cost holding one units in inventory is R12 per year . The cost of reordering and taking delivery is R1500 per order regardless of the size of the order . experience has shown that the supplier of the raw material can be unreliable and that the delivery period can range between one week and tree weeks .If the company wants to hold enough raw material to ensure that it never runs out , calculate the lowest inventory level at which raw material should be recorded. period to 45 days. it is expected that on average 60% of customers will take the discount and pay within 30 days, 30% of customers will pay after 45 days. and the rest of the customers will not change their payment behavior. OSP inc charge 12% per annum on its overdraft facility. Determine the net benefit (cost) of the proposed changes in the trade receivable policy

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