Determining EOQ by Formula: Safety Stock: Reorder Point. Brandun Company uses 24,000 units of Part 67K annually. In the past, it has ordered 2.000 units per month. Now, however, the inventory manager wonders whether this is the most economical thing to do. Order costs are $60 per order and carrying costs are $8 per unit. It normally takes three days for an order to be received. Sometimes it takes longer, but it has never taken longer than ten days.

a. Use the formula to calculate EOQ

b. Assuming that the firm uses Part 67K on the basis of a 300-day year, determine the necessary safety stock

e. Calculate the reorder point.