ADR Ltd purchases a particular items in lots of 1 250 units. Its annual usage of this item is 6 250 units. Ordering costs are R 200 per order and the carrying (holding) costs are R10 per unit per year.Calculate each of the following: 1.1.1 The Economic Order Quantity (EOQ) in units (6)1.1.2 Number of orders (3)1.1.3 Cost of orders (Order costs) (3)1.1.4 Average Inventory held (3)1.1.5 Cost of holding stock (3)1.1.6 Total cost (2)
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