A. A manufacturer uses 100,000 components costing $1 each at a constant rate throughout the year. The cost of making a single order for more components is$10 and the holding costs for each component are 0.5% of the average inventory value.

From the information provided, compute the economic order quantity (EOQ).

B. A retailer demand for raw material is 100,000 units. Each unit costs $0.15. Procurement costs for each order are $20 and lead-time has been estimated as 2 days. There are 250 working days per year, the carrying cost of inventory is $0.10 per unit and the cost of stock out is $0.20 per unit.

From the information provided, compute the optimal reorder level.