A popular item stocked by the Fair Deal Department Store has an annual demand of 600 units. The cost to purchase these units from the supplier is $ 20 per unit and $ 12 to prepare the purchase order. The annual inventory holding cost is 20 percent of the purchase cost. The manager tries to maintain the probability of stock out at 5 percent or less. Lead time demand is uniform, between 30 and 70 (i. e., the probability of lead time is 1/ 41 =.0244 for demand = 30, 31, . . ., 70).

a. Calculate the EOQ.

b. Calculate the reorder point.

c. Calculate the safety stock.

d. If we purchase 80 units or more, the unit purchase cost is reduced to $ 19. Calculate the EOQ for this quantity discount case.