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Gumede Construction manufactures aluminium door and window frames for the domestic market. The aluminium used in the manufacturing process is ordered in 100 metre rolls. Mr. Gumede expects to use 4000 rolls for the year 2021. His ordering costs are R25.00 and the holding cost is R 60.00. The business works 301 days per year.

Calculate:

4.1 The Economic Order Quantity (EOQ) (5)

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4.2 The number of orders per year (3)

4.3 The length of the order cycle. (2)

4.2 Gantt Charts and Network diagrams are both used in the planning and scheduling of projects.

4.2.1 Provide an overview of each of these techniques. (6)

4.2.2 Provide an opinion on which technique is better, giving reasons for your response.

 
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