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Melewar Inc believes it will sell 4 million liters oil, this coming year (note that this figure is for annual sales). The inventory manager plans to order oil 40 times over the next year. The carrying cost is RM0.03 per liter per year. The order cost is RM600 per order.
i. Calculate the annual carrying cost, the annual ordering cost, and the economic order quantity (EOQ).
ii. Determine the reorder point, if the annual business days is 320 days and the lead time is 7 days.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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