ADR Ltd purchases a particular items in lots of 1 250 units.Its annual usage of this item is 6 250

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ADR Ltd purchases a feature parts in lots of 1 250 individuals. Its annual habit of this part is 6 250

individuals. Ordering costs are R 200 per enjoin and the carrying (holding) costs are R10 per individual per year.

Calculate each of the following:

1.1.1 The Economic Enjoin Quantity (EOQ) in individuals       (6)

1.1.2 Number of enjoins                                                   (3)

1.1.3 Cost of enjoins (Order costs)                                (3)

1.1.4 Average Inventory held                                          (3)

1.1.5 Cost of pursuit stock                                            (3)

1.1.6 Total cost                                                               (2)

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