Question 2 A company's annual consumption of a raw material is 60,000 units. The cost of raw material is $5 per unit. Placing a purchase-order costs the company $120. Holding costs are 20% per year of material cost per unit. The company works for 320 days in a year and the lead time for supply is consistent at 16 days. The company holds safety stock of 800 units to meet contingencies. If the company adopts the EOQ Model of procurement, compute the re-order level. Draw the 'saw-tooth' graph of inventory level over time to support your answer. Question 2 A company's annual consumption of a raw material is 60,000 units. The cost of raw material is $5 per unit. Placing a purchase-order costs the company $120. Holding costs are 20% per year of material cost per unit. The company works for 320 days in a year and the lead time for supply is consistent at 16 days. The company holds safety stock of 800 units to meet contingencies. If the company adopts the EOQ Model of procurement, compute the re-order level. Draw the 'saw-tooth' graph of inventory level over time to support your