1. A. (EOQ) Calculate the EOQ quantity given:

a. Fixed cost per order of $40

b. holding cost per inventory unit of $2.00

c. estimated demand for inventory of 200,000

Solve EOQ using the information listed above:

B. Calculate the total cost associated the EOQ amount calculated in part A:

C. The company wants to keep Safety Stock of an additional; 8 units. Calculate the cost associated with the safety stock and the total cost of the EOQ amount with safety stock.

Cost of Safety stock:

Total cost with safety stock included:

D. It takes 2 days to get a delivery. Calculate the Reorder point when another order for the EOQ amount should be placed: