3. The Inventory Company' data are as follows: Average re-order period Optimum number of orders per year Average daily usage Cost to store one unit per year Cost of stock out per unit per time Usage during re-order period 80 Frequency 4 16 25 days 10 per year 4 units P5 P20 0 90 100 10 115 35 125 20 150 15 175 10 a. What is the re-order point should the company desire a 90% safety from stock-out? Answer: b. Determine the company's safety stock if the normal usage is 100. Answer: