Annual usage 12000 units, ordering costs = Rs.60 per order, carrying costs 10%, unit cost of item= Rs 10 and lead time-10 days There are 300 working days per year. Determine EOQ and number of orders per year. In the past two years the use rate has gone as high as 70 units per day. For a reordering system based on the inventory level, what should be the safety stock? What should be the reorder level at this safety.

stock? What would be the carrying costs for a year?