A manufacturer uses 7,812.5 units of raw material per year; the cost is $10.00 per unit.

Carrying Costs are: 10% desired return on investment in inventory (which is 10% of $10.00, which equals $1.00); plus $.25 per unit for storage taxes, etc. so they total $1.25 per unit per year.

Cost per purchase order is $20.

Calculate EOQ

The company operates 340 days per year; and the lead time is 10 days. A safety stock of 50 units is required. Determine how many units are in stock when the company would re-order.

(Re-order point) - Round your final calculation.