2 Information on one of the raw materials used by JIT Co. in its manufacturing processes is listed below 3 4 Total = 10.0 marks 5 6 7 Working days per year Normal use per day Maximum use per day Minimum use per day Lead time Cost of placing order Carrying cost/unit per year 250.0 325.0 600.0 100.0 3.0 days $25.00 $2.00 8 9 10 11 12 Required Based on the above information, 13 14 15 1a Calculate the economic order quantity (EOQ) and reorder point based on normal demand 4.0 16 17 18 19 20 21 22 1b Explain what the EOQ value represents. 2.0 23 24 25 26 27 28 2 Considering the maximum use per day, what safety stock should the company maintain? What is the new re-order point with safety stock? 4.0 29 30 31 32 33 34 35 36 37 38 10 P1 P2 P3 P4 New