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Inventory Management 1 Turnover analysis CostsAverage Turnover Rate a. $500,000 S300,000 $200,000 300,000 50,000 300,000 100,000 500,000 300,000 75,000 300,000 60,000 00,000 50,000 1.5 2.0 3.0 4.0 5.0 6.0 b. 500,000 500,000 10% capital cost, therefore, $200,000 average inventory costs $20,000 d. Calculate the cost of capital for b-f above at the given 10% b 150,000 c. 100,000 75,000 60,000 50,000 d. Recalculate the cost of capital for a-f above using 15% a. 200,000 b 150,000 c. 100.000 75,000 60,000 50,000 d. 2. Simplified reorder system Small store, one item example Given: a. Normal saies 2 per month, b. Reorder time 15 days, c. Maximum stock 6 unit:s and Safety stock unit (based on a desired customer satisfaction level of 95%) Determine the following Reorder point in units Reorder quantty