SMART DEVICE uses a fixed order quantity system and operates $365$ days a year. The annual demand for their phone chargers is $14,600$ units. The ordering

cost is $$40$ per order and the annual holding cost is $$3\mathrm{.}00.$ They would like to achieve a cycle service level of $80$ percent. Their lead time is $3$ days with a

standard deviation of daily demand of $4$ chargers. Each charger costs $$11.$

What is the EOQ?

What is the Safety Stock?

What is the Reorder Point?

If they currently use a lot size of $500$ chargers, what is their total cost?

If they use the EOQ as their lot size, how much would they be saving over using a lot size of $500$ chargers?

Don't forget to include the cost of holding the Safety Stock in your total cost formula!