1. Below are the data for water-testing kits stocked by a field unit of the Environmental Protection Agency. Optimal order (Qn) = 6 orders per year.

Average daily use : 6 kits

Average reorder period : 20 kits per day

Cost to store one kit per year : P8

Estimated out of stock cost per kit : P30

Usage during reorder period	Probability of usage
40	10
60	15
80	20
100	35
120	15
140	3
160	2

What is the reorder point?

a. 100 kit

b. 160 kits

c. 120 kits

d. 140 kits

2. The cost of placing an order is P60 and the carrying cost is P30 per unit per year. The estimated annual demand is 10,000 units. Find the economic order quantity. a. 190 units b. 195 units c. 200 units d. 205 units