1. inventory data:

Estimated cost of ordering and receiving inventory (per order in bags)	$2,000
Estimated annual cost of carrying inventory (per kg)	$0.15
Estimated annual usage (purchased in 15 kg bags)	3,900,000 kg
Lead time per order	2 weeks
Annual manufacturing operating time (in weeks)	50 weeks
Maximum weekly material usage	5,500 bags

Tasks

1. Calculate the economic order quantity, safety stock required, and reorder point (use bags as the units).
2. Briefly explain the meaning of your calculations