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Home Pro Sdn Bhd sells a wide range of electrical appliances to householders in IOl...

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Accounting

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Home Pro Sdn Bhd sells a wide range of electrical appliances to householders in IOl mall. One of the products it offers is Supersonic Blender MX101. The supplier for Supersonic Blender MX101 pays all incoming freight. No incoming inspection of Supersonic Blender MX101 is necessary because the supplier has a track record of delivering high-quality product. The purchasing officer of the Home Pro Sdn Bhd has collected the following information: Annual demand for Supersonic Blender MX101 Ordering cost per purchase order Carrying cost per year Cost of Supersonic Blender MX101 12,100 units RM225 10% of purchase costs RM34 per roll The purchasing lead time is 4 weeks. The Supersonic Blender MX101 is open 312 days a year (52 weeks for 6 days a week). Required: a) Calculate the EOQ for Supersonic Blender MX101 b) Calculate the number of orders that will be placed each year c) Calculate the reorder point for Supersonic Blender MX191 (5 marks) (4 marks)

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