Please calculate the EOQ of the tire (4 marks) and identify and explain any three factors that may influence the ability of an enterprise to secure adequate financing (6 marks).

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Asked on May 19, 2026Business/Management

This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

Accepted Answer · 2026-05-19T19:06:28.055Z

Hey Cool, good to see you again. Here's the solution for 3.3: 3.3 Please calculate the EOQ of the tire (4 marks) Step 1: Calculate the total annual demand (D). The demand for the first 4 months is 5250 units/month × 4 months = 21000 units. The demand for the remaining 8 months (12 - 4 = 8) is 3625 units/month × 8 months = 29000 units. The total annual demand is the sum of these two periods. D = 21000 units + 29000 units = 50000 units Step 2: Identify the ordering cost (S) and carrying cost (H). The cost per order (S) is R1,000. The carrying cost per unit (H) is R2 per year. Step 3: Apply the Economic Order Quantity (EOQ) formula. The EOQ formula is: EOQ = sqrt((2DS)/(H)) Substitute the values into the formula: EOQ = sqrt((2 × 50000 × 1000)/(2)) EOQ = sqrt((100000000)/(2)) EOQ = sqrt(50000000) EOQ ≈ 7071.07 The EOQ is approximately 7071 units. The EOQ of the tire is 7071 units. 3.3 Identify and explain any three factors that may influence the ability of an enterprise to secure adequate financing (6 marks) Here are three factors: Financial Performance and Profitability: Lenders assess an enterprise's past and projected financial statements, including income statements and balance sheets, to determine its ability to generate profits and repay debt. A history of strong, consistent profits and healthy cash flow indicates a lower risk. Creditworthiness and Credit History: An enterprise's track record of managing and repaying existing debts is crucial. A good credit score and a history of timely payments demonstrate reliability and financial discipline, making it more attractive to potential lenders. Collateral: Lenders often require assets to be pledged as security for a loan. The availability and value of collateral (such as property, equipment, or inventory) reduce the risk for the lender, as they can seize these assets if the enterprise defaults on its loan obligations. Send me the next one 📸

Accepted Answer · 2026-05-19T19:06:28.055Z

Hey Cool, good to see you again. Here's the solution for 3.3: 3.3 Please calculate the EOQ of the tire (4 marks) Step 1: Calculate the total annual demand (D). The demand for the first 4 months is 5250 units/month × 4 months = 21000 units. The demand for the remaining 8 months (12 - 4 = 8) is 3625 units/month × 8 months = 29000 units. The total annual demand is the sum of these two periods. D = 21000 units + 29000 units = 50000 units Step 2: Identify the ordering cost (S) and carrying cost (H). The cost per order (S) is R1,000. The carrying cost per unit (H) is R2 per year. Step 3: Apply the Economic Order Quantity (EOQ) formula. The EOQ formula is: EOQ = sqrt((2DS)/(H)) Substitute the values into the formula: EOQ = sqrt((2 × 50000 × 1000)/(2)) EOQ = sqrt((100000000)/(2)) EOQ = sqrt(50000000) EOQ ≈ 7071.07 The EOQ is approximately 7071 units. The EOQ of the tire is 7071 units. 3.3 Identify and explain any three factors that may influence the ability of an enterprise to secure adequate financing (6 marks) Here are three factors: Financial Performance and Profitability: Lenders assess an enterprise's past and projected financial statements, including income statements and balance sheets, to determine its ability to generate profits and repay debt. A history of strong, consistent profits and healthy cash flow indicates a lower risk. Creditworthiness and Credit History: An enterprise's track record of managing and repaying existing debts is crucial. A good credit score and a history of timely payments demonstrate reliability and financial discipline, making it more attractive to potential lenders. Collateral: Lenders often require assets to be pledged as security for a loan. The availability and value of collateral (such as property, equipment, or inventory) reduce the risk for the lender, as they can seize these assets if the enterprise defaults on its loan obligations. Send me the next one 📸

Please calculate the EOQ of the tire (4 marks) and identify and explain any three factors that may influence the ability of an enterprise to secure adequate financing (6 marks).

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Please calculate the EOQ of the tire (4 marks) and identify and explain any three factors that may influence the ability of an enterprise to secure adequate financing (6 marks).

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More Business/Management Questions