Problem 4. Stevan Company has the following information: Annual demand 4,000 units Order size 1,000 units Ordering cost per order $500 Carrying costs per unit for one year $50 Lead time (maximum 20 days) 10 days Maximum daily use 25 units 250 days Work year Required: a. Determine the economic order quantity for Stevan. b. What is the annual savings to Stevan Company if it was to change from an order size of 1,000 to the economic order quantity? c. What is the reorder point? d. What is the safety stock needed to prevent stockouts