Question 2: Inventory Management (1+1+1+1+2+2-8 marks) A special construction ha

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Question 2: Inventory Management (1+1+1+1+2+2-8 marks) A special construction hardware store sells 150 units per fortnight of a special heating system installation kit. The unit cost of the installation kit to the store is $950 and the cost of placing an order has been estimated to be $2200. The store uses an inventory carrying charge of 20% per year tholding cost is .20 950). Assuming the average quantity is used as the basis for holding cost, answer the following questions What is the annual demand for the heating installation kit? i. What is the optimum size order quantity for this installation kit? How many times order should be placed per year? v. What is the reorder point based on the inventory level for this product? Given a purchase usuall takes two weeks to arrive. v. Describe two limitations of this model.

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Note; Chegg mandates answering of first four questions, although it encourages to answer as many as possible. Kindly repost the remaining questions to get them answered by an expert.

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