XYZ Ltd. has an annual requirement for a certain material of 500 tonnes. The ordering cost per order is ₹6,250 and the stock holding cost is estimated at 25% of the material cost per annum. You are required to: Calculate

Calculation of Total Number of Orders per Year Given: Annual Requirement (A) = 500 tonnes Economic Order Quantity (EOQ) = 69 tonnes (from part (i)) Formula: Total Number of Orders per Year = Annual Requirement / EOQ Calculation: Total Number of Orders = 500 / 69 Total Number of Orders ≈ 7.25 Rounding up to the nearest whole number for practical purposes, the total number of orders to be placed per year will be 8 orders.