TV Galore is a new specialty store that sells television sets, video games, and other television-related products. A new Japanese-manufactured game sells cost $400.

a. Set up a fixed-order-quantity system computing the EOQ, reorder point with safety stock, and total order and inventory carrying costs.

b. Setup a fixed-period system computing the review period (T) and the replenishment level (M) with safety stock. Round the review period to the next highest number.

c. How much more does it cost to carrying inventory in a FPS than a FQS using only dL versus d(T+L) and safety stock = zs_L versus zs_T+L?