1. Paint Company uses 60000 gallons of pigment per year. The cost of ordering pigment is br.200 per order, and the cost of carrying the pigment in inventory is br.1 per gallon per year. The firm uses pigment at a constant rate every day throughout the year
a. Calculate the EOQ?
b. Calculate the total cost of plan suggested by the EOQ?
c. Determine the total number of orders suggested by this plan?
d. Assuming that it takes 20days to receive an order once it has been placed, determine the order point in terms of gallons of pigment.(Assume the 360-day year)