Economic Order Quantity (EOQ) is a formula that is still used in procurement algorithms. It is also still taught in Supply Chain Master's programs. Therefore you must become familiar with the EOQ process. EOQ can be mathematically calculated to present the dollar value of the order or the number of units to purchase. For this assignment, use the concepts in chapter 9 and calculate the economic order quantity in units using the following data:

1. Solve for number of units

EOQ = The most economical order in units

R - Annual demand in units = 200

A- Administrative cost per order = $25 per order

V- The dollar value of inventory = $5 per unit

W- Carrying cost of inventory (expressed in annual percentage of inventorys dollar value) = 20%

2. Using the following data, solve for reorder point ROP and ROP plus safety stock.

DD Average daily demand = 80

RC Replenishment Cycle = 5 days

SS Safety stock = 40 units

A: When the inventory reaches how many units, do you place another order?

B: How many units do you order, including safety stock