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Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x $2 = $0.30
EOQ = √<u>2DCo</u>
H
EOQ = √<u>2 x 100,000 x $15</u>
0.30
EOQ = 3,162 units
2. Maximum inventory
= Safety stock + EOQ
= 1,500 + 3,162
= 4,662 units
3. Average inventory
= EOQ/2
= <u>3,162</u>
2
= 1,581 units
4. Number of order
= <u>Annual demand</u>
EOQ
= <u>100,000</u>
3,162
= 32 times
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.
The socioeconomic view of corporate social accountability is that commercial enterprise have to center of attention on making precious contributions to society, now not just making profits.
<h3>What is the financial model of social responsibility?</h3>
The socio-economic model of social duty demonstrates that a enterprise not only focus or listen upon what form of income it is making or how will it make extra income in the future but additionally seem to be after the effect that it is inflicting on society from time to time.
<h3>Why is company social accountability necessary to business?</h3>
Embracing CSR will increase client retention and loyalty, increases employee engagement, improves manufacturer imaging, attracts funding opportunities and pinnacle talent, and makes a difference for bottom-line financials.
Learn more about corporate social responsibilities here:
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