Calculation EOP and ROP for first 30 days: 2* D * K 2 *9696 *1000 EOQ= V =440 kits h 10 Where: D = 9696 kits (total expected demand in a year) K = $1000 H = 10%*100 = $10 ROP = D * L+z*8* VL= 9696 *14 14 +2.33 *2.34*1 : 378 kits 360 360 Where: D = 9696 kits (total expected demand in a year) L = 14/360 Z = 2.33 (assume service level is 99%) o = 2.34 (descriptive statistic demand analysis)