3. Bob King is the owner of King's Carpeting, LLC, a company that manufactures carpet. Bob estimates that the annual demand for carpet trim X15, the inven- tory item Bob is currently analyzing, is 58,500 yards. Bob further estimates that it costs his company $5.85 to place an order. King's Carpeting has a ware- house for which the average cost to hold one dollar of inventory for one year equals $0.05. The price per yard for carpet trim X15 is $10. It takes five days to receive an order of carpet trim X15 from King's Carpeting's supplier once an order is placed, and the highest quantity of carpet trim X15 King's Carpeting has ever used in one day is 175 yards. Assuming King's Carpeting operates 350 days per year, what are King's Carpeting's EOQ and ROP for carpet trim X15? E002 DK E0QCP where D-the annual demand for an inventory item K - the cost to order the item C - the average cost to hold one dollar of inventory for one year (average hold ing cost), calculated by dividing average annual inventory holding costs by average total inventory value P= the unit purchase price of the item ROP-LD + SS where L-lead time, the time in days) that lapses between order placement and order receipt D-average daily demand, the quantity of an inventory item that is used or sold daily SS -safety stock, the quantity of stock kept on hand to cover variability in demand