Learning Goal: I’m working on a economics question and need guidance to help me

Learning Goal: I’m working on a economics question and need guidance to help me learn.INVENTORY CONTROL. Inventory refers to stock of goods, commodities, or other economic resources that are
stored or reserved at any given period for future production or for meeting future
demand.
What is inventory management?
It is the function of directing the movement of goods through the entire manufacturing
cycle from the requisition of raw materials to the inventory/stock of finished goods in
such a manner as to meet the objectives of maximum customer service with minimum
investment and efficiency.Question 1. A manufacturer has to supply his customers with 1200 units of his product per annum.
The inventory carrying cost amounts to ₤ 1.2 per unit. The set-up cost per run is ₤ 160.
Find:
i) EOQ
ii) Minimum average yearly cost
iii) Optimum no of orders per year
iv) The optimum time between orders (optimum period of supply per optimum order)Question 2. The annual demand per item is 6400 units. The unit cost is ₤ 12 and the inventory
carrying charges 25% per annum. If the cost of procurement is ₤ 300 determine:
i) EOQ
ii) No. of orders per year
iii) Time between 2 consecutive orders
iv) Optimal cost
Requirements: There are 2 questions.

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