2.2 REQUIRED Use the information provided below to calculate the annual Economic Order Quantity (EOQ).(5 marks)INFORMATION: The monthly sale of an item is 900 units. The selling price per unit is R7.50, and the item is sold at cost plus 50%. The ordering cost amounts to R20 per order, and the holding cost per unit is equal to 10% of the unit cost of the item.

Answered: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The company desires a safety stock of 500 units. A 5-day lead time… | bartleby

Answered: Basic EOQ. This type of problem can be recognized when annual demand (D), ordering cost (S), andholding or carrying cost per unit (H) are given. Use Formula… | bartleby