Material Inventory Cost accounting , PLZ SOLVE QUESTION 2 BOTH ASSUMPTIONS PROPERLY

Q2. The Bolger company has obtained the following data: Assumption 1: Working days per year Normal use per day Maximum use per day Minimum use per day Lead time Variable cost of placing one order Variable carrying cost per unit $ 1 250 Assumption 2: Working days per year Annual usage Maximum use per day Lead time Cost of placing one order Carrying cost percentage Per unit cost of material Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) e) Absolute Maximum Inventory time and usage 5 days $36 250 500 units 600 units 100 units 10% $10 Required: a) Economic Order Quantity c) Ordering Point (Reorder Level) b) Safety Stock Maximum d) Normal Maximum Inventory f) Average inventory assuming normal lead 5 days 125,000 units 600 units $36 b) Safety Stock Maximum ||