Octopus Company provides you with the following information regarding its inventory: Maximum lead time                                        5 weeks Minimum lead time                                         2 weeks Normal lead time                                            3 weeks Normal weekly usage                                     4 000 units Interest rate                                                    5% Cost price per unit                                          R20 per unit Inventory carrying cost                                   R7 per unit Ordering cost                                                  R30 per order Maximum weekly usage                                 4 000 units Minimum weekly usage                                 3 000 units Required: Calculate Number of orders per year      166.53 times      1700 times      155.63 times      167.53 times      None of the above

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A: C&A's weekly inventory turns = (No. of days x daily sales ) / Average inventory

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A: A reorder point (ROP) is the point at which your inventory must be replenished. In other words, it…

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A: Following formula can be used to calculate the re-order point:

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