A company sells 60,000 litres of a commodity per year. Cost of the commodity is $10 per litre. Inventory carrying costs are 15% of the commodity cost. The cost of ordering is $72 per order. Order lead time averages five days and average daily demand is 200 litres per business day. Management wants a safety stock of ten days. Required: (a) Calculate the E.O.Q. for the commodity. (b) Determine how many orders should be placed each year. (c) Find the re-order point.