MCgel Corp. consumes 300,000 units of spare part V per year. The average purchase lead time is 20 working days. The company's annual operations covers 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The company would like to keep safety stock or extra stock to guard against stock outs. The company would like to keep safety stock or extra stock to guard against stock outs. How much is the safety stock (in units)? XYZ Inc., currently places orders for a particular stock item at quarterly intervals. Data concerning these items are as follow: Cost of placing an order Annual demand Purchasing price per unit Carrying cost rate P10 20,000 units P1.00 10% What annual cost saving would result if Labad used the economic order quantity for order sizes instead of their current policy?