EOQ, reorder point, and safety stockAlexis Company uses 815 units of a product per year on a continuous basis. The product has a fixed cost of $44 per order, and its carrying cost is $2 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock.

a.Calculate the EOQ.

b.Determine the average level of inventory.(Note: Use a 365-day year to calculate daily usage.)

c.Determine the reorder point.

d.Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity.

Round all answers to the nearest whole number