Brian Ltd. sells standard alarm systems for residential homes. They have a standard product called Home Security. The demand for this product is 185 units per month. The supplier charges for the deliveries, so the fixed cost per order is 20. The holding cost per annum per unit is 12% of the purchase price. It costs 85 per unit to purchase the product.

The following information is also available.

• Average usage 6 units per day
• Minimum usage 3 units per day
• Maximum usage 8 units per day
• Lead time for replenishment 9 days15 days
• Buffer inventory 5 units

• Required:

• Calculate the EOQ (reorder quantity in units), reorder level, minimum inventory level, maximum inventory level.