EOQ and JIT

Charlie inc. has the following information available concerning one of its inventory items:

Annual unit demand 3,200

Cost of placing an order $50.00

Unit carrying cost per year $ 2.00

Safety stock 80

Average daily demand 10

Normal lead time in days 12

Required: Show all work

1. Calculate the Economic Order Quantity.
2. Compute the ordering, carrying, and total costs for the EOQ.
3. What approach does JIT take to minimize total inventory costs? What is the most significant shortcoming of a JIT inventory policy?