P15-6 EOQ, reorder point, and safety stock Outdoor Living Manufacturers uses 1,000 units of a product per year. The fixed cost is $28 per order, while the carrying cost is $5 per PART 7 Short-Term Financial Decisions 365 unit per year. The lead time is 5 days and therefore, the firm keeps 7 days' usage in 1600 A7 * ventory as safety stock. (Note: Use a 365-day year where required.) a. Calculate the economic order quantity (EOQ) and the average inventory. 4.176 b. How many orders will Outdoor Living Manufacturers place during one year? 10065 When should Outdoor Living Manufacturers place its orders? x7 day + 34 d. Suppose Outdoor Living Manufacturers does not keep safety stock. Explaint changes, if any, that will occur in (1) order cost, (2) carrying cost, (3) total in tory cost, (4) reorder point, and (5) EOQ. unchange C. OC + 13.699 72 P15-6 EOQ, reorder point, and safety stock Outdoor Living Manufacturers uses 1,000 units of a product per year. The fixed cost is $28 per order, while the carrying cost is $5 per PART 7 Short-Term Financial Decisions 365 unit per year. The lead time is 5 days and therefore, the firm keeps 7 days' usage in 1600 A7 * ventory as safety stock. (Note: Use a 365-day year where required.) a. Calculate the economic order quantity (EOQ) and the average inventory. 4.176 b. How many orders will Outdoor Living Manufacturers place during one year? 10065 When should Outdoor Living Manufacturers place its orders? x7 day + 34 d. Suppose Outdoor Living Manufacturers does not keep safety stock. Explaint changes, if any, that will occur in (1) order cost, (2) carrying cost, (3) total in tory cost, (4) reorder point, and (5) EOQ. unchange C. OC + 13.699 72