Rahim uses 3,600 computer motherboards per year. Each motherboard carrying cost is $80, and the ordering cost is estimated to be around $350 per order. It is expected 3 days for the lorry to arrive delivering the motherboard.

Also, the company would like to keep at least 3 days of inventory for safety or buffer stock. Rahim has just hired you to provide some analysis on the company's inventory usage. Assume there are 360 days in a year. Would you please assist Rahim to figure out the key items as shown below:

a. What does EoQ mean and its importance, and please describe based on your understanding.

b. Calculate the total ordering cost per year

c. Calculate total carrying cost per year

d. Calculate EoQ

e. Calculate reorder point