Consider the following inventory information and relationships for the F. M. Beaner Corporation: 1. Orders can be placed only in multiples of 100 units. 2. Annual unit usage is 300,000. 3. The carrying cost is 30% of the purchase price of the goods. 4. The purchase price is $10 per unit. 5. The ordering cost is $50 per order. 6. The desired safety stock is 1000 units. (This does not include delivery- time stock.) 7. Delivery time is 2 weeks.

a. What is the optimal EOQ level? b. How many orders will be placed annually? c. At what inventory level should a reorder be made? d. What is the total cost of EOQ based system? Dont forget Safety stock. e. What happens to EOQ if the carrying cost rises? Explain.