Horizon Electronics is a regional distributor supplying various electronic components to retail and service partners across the Midwest. One of their most critical products is a precision temperature sensor,referredtoas Product X,which experiences stable and predictable demand throughout the year. Horizon's central warehouse handles the inventory for this item.The operations team has been directed to optimize inventory management for Product X due to increased carrying costs and occasional stockouts. The company currently uses a continuous review system and wishes to maintain sufficient buffer inventory to handle uncertainty during the lead time.The following data is available for Product X:-Annual demand (D): 24,000units-Orderingcost(S): ??$150per order-Holdingcost(H): ??$3per unit per year-Daily demand: 80units-Lead time: 5working days-Operating days per year: 300days-Safety stock: 200unitsTaskThe operations team needs to determine the optimal ordering policy using the Economic Order Quantity (EOQ)model and calculate the appropriate Reorder Point (ROP)to avoid stockouts during lead time.(a) Calculation-Based SubpartUsing the data provided:Calculate the Economic Order Quantity (EOQ) using the EOQ formula:EOQ=2DSH2Calculate the Reorder Point (ROP)by considering lead time demand and safety stock:ROP=( Daily Demand Lead Time )+ Safety Stock Provide the final EOQ and ROP values with appropriate units and clearly show your working steps. (b) Flowchart-Based SubpartDraw a flowchart that illustrates the inventory control process for Product X using the EOQ model. Theflowchart should include:Start of inventory monitoringContinuous tracking of stock levelsDecision point for comparing current inventory to the ROPTriggering an order if inventory reaches or falls below the ROPInventory replenishment upon deliveryReturn to monitoring phaseEnsure the flowchart is labeled clearly and shows the logical sequence of decisions and actions involvedin managing Product X's inventory. 1