1. Outdoor Living Manufacturers uses 1,000 units of a product per year. The fixed cost is $21 per order, while the carrying cost is $5 per unit per year. The lead time is 5 days and, therefore, the firm keeps 7 days usage in inventory as safety stock. (Note: Use a 365-day year where required.)

1. Calculate the economic order quantity (EOQ)
2. How many orders will Outdoor Living Manufacturers place during one year?
3. Determine the reorder point in terms of units of product