Problem 1: (10 Points) A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying costs are $2 per unit per year. Calculate the following: (a). The EOQ in units. (b). Number of orders per year. (c). Annual ordering cost, annual holding cost, and annual total cost Problem 2: (10 Points) Given this information: - Expected demand during lead time =400 units - Standard deviation of lead time demand =50 units Assuming that lead time demand is distributed normally. The risk of stockout is 1 percent during lead time. (a) What amount of safety stock is appropriate? (b) Calculate ROP