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EXAMPLE 12.11-4 b30 The following information is provided for an item Annual usage - 12.000 units, ordering costs -260 per order, carrying costs 10%, unit cost of item-10 and lead time - 10 days. There are 300 working days year Determine E.O.Q. and number of orders per year. In the past wo 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? Gujarat Tech. U.B.E. Dec, 2012; NIIFT Mohall, 1999)