Joy Bionics Ltd. (Bionics) among other things sells robot kits and robotic systems. One of the replacement items that it holds in inventory is a robocontroller. Bionics sells 1,125 robocontrollers annually. The cost to place an order for robocontrollers is $4.00, while the holding cost is 14.4% of the selling price. Joy purchases and takes delivery of the robocontroller from a supplier for an all in cost of $55. Joy operates 7 days a week working 50 weeks per year. The selling price of the robocontroller is $100. If a sale cannot be made because there are no controllers on hand, Joy forgoes the contribution margin on the robocontroller. Lead time on orders is 1 week.

Bionics sales have been summarized and statistically analyzed the sales profile is as follows:

Sales (units) 5 10 15 20 25 30 34

Demand Probalility 0.09 0.06 0.25 0.2 0.24 0.15 0.01

Required Calculate the following: show all calculation as your proof. a) EOQ

b) Re-order point

c) Number of orders that would be placed in a year

d) Total Relevant Cost

e) Calculate the appropriate level of safety stock