Question: Please use the data to answer the four questions 1. How much should you order each time if you are using an EOQ inventory system?

Please use the data to answer the four questions

1. How much should you order each time if you are using an EOQ inventory system?

2. What is the TAIC (total annual inventory cost) using the EOQ as your order quantity?

3. What safety stock would be required to maintain a 95% service level?

4. What should you set your reorder point at in a continuous review inventory system if you decide on a 95% service level?

E d per order Order Cost Holding Cost Average Lead Time Standard Deviation of Lead Time Value of Bag of Barley Assume 300 Operating Days Per Year $18 20% 5 0.3 $11 of item value days days Average daily demand of barley Average demand during lead time 30.92222222 =AVERAGE(B2:391) 154.6111111 =E3*D9

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