Answer to Question #144615 in Other for Amogelang

Question

Sky Ltd produces and sells cameras. The camera lenses are ordered from a supplier in Germany and it takes
about 3 to 6 weeks for the lenses to be delivered from the date the order is placed. The company operates for
50 weeks a year. One lens cost R900. The cost of placing an order is R400 and the cost of storing one lens
per annum is R183.
Minimum usage per week 23 lenses
Maximum usage per week 67 lenses
Required
Calculate the following:
1.1 Economic order quantity
1.2 Total order cost for the year
1.3 Total storage cost for the year
1.4 Total cost of material used in production
1.5 Re-order level
1.6 Maximum inventory level
1.7 Minimum inventory level
1.8 Average inventory level
1.9 Safety stock

Answer 1

Dear Amogelang, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order