10 EOQ and Reorder point,

(a) The City Bakery uses 10,800 kilogrammes of dried fruit ingredients per year. If ordering costs are £10 per order and the carrying cost is

£5 per kilogramme per year, calculate the economic order quantity,

(b) If it takes 3 days from order to delivery, calculate:
(i) The reorder point. Assume a 360 day year.
(ii) The reorder point assuming a safety stock of 2 days.