Explanation:
a. The computation of the economic order quantity is shown below:


= 1,580 units
The carrying cost is
= $50 × 10%
= $5
b. The number of orders would be equal to
= Annual demand ÷ economic order quantity
= 15,600 ÷ 1,580
= 9.87 orders
Ordering cost = Number of orders × setup cost per order
= 9.87 orders × $400
= $3,949.37
c. The average inventory would equal to
= Economic order quantity ÷ 2
= 1,580 units ÷ 2
= 790 units
Carrying cost = average inventory × carrying cost per unit
= 790 units × $5
= $3,950
c. Now the total cost
= Setup cost + carrying cost
= $3,949.37 + $3,950
= $7,899.37
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Answer:
Maintenance Phase
Explanation:
One of the concepts employed in project management for describing stages involved when carrying out an information system development project is the systems development life cycle (SLDC). The cycle which starts from carrying out a feasibility study and ends in maintenance is a highly used conceptual model. There are 5 major stages or phase and they are the; Requirement Phase, Design Phase; Implementation Phase, Test Phase, and the Maintenance phase. The maintenance phase comes when testing has been complete and all enhancement and modifications have already been developed, and the system is operating.