E14–3 Mama Leone’s Frozen Pizzas uses 50,000 pounds of cheese per year. Each pound costs $2.50. The ordering cost for the cheese is $250 per order, and its carrying cost is $0.50 per pound per year. Calculate the firm’s economic order quantity (EOQ)

for the cheese. Mama Leone’s operates 250 days per year and maintains a minimum inventory level of 2 days’ worth of cheese as a safety stock. Assuming that the lead time to receive orders of cheese is 3 days, calculate the reorder point.