The market demand for PSG's product is 2 000 units per month. Sales are spread evenlythroughout the year. The cost price of a unit is R10 each and PSG sells the product at R15 each.Expenditure associated with inventory is as follows:Ordering costR25 per order20 % per annumInterest rateHolding costsDelivery timeWeekly demand 400 – 600 unitsR48 per unit2 weeks to 4 weeksRequired:Calculate the following:3.1. Economic order quantity3.2. Re-order point3.3. Maximum inventory holding3.4. Minimum inventory holding

Answered: The market demand for PSG's product is…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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