The supply chain team has provided the following key data to calculate the newest EOQ order quantitiy and reorder point $($ROP$)$

$1.$ For a perpetual review system,calculate the re$-$order point where the average performance cycle lenght $($T$)$ equals $20$ days

$2.$ Calculate each metric and show the appropriate calculations.

$3.$ Discuss the challenges of using the EOQ concept from an assumption perspective.

Annual demand in units $-10,000$

Estimated internal ordering cost per order $-$ $$75$

Cost per unit $$1500$

Estimated internal inventory carrying cost $15\%$

Supplier lead time $($T$)-10$ days

Safety stock $-200$ units

D$-$Annual demand in units

S$-$ Cost per order

C$-$ cost per unit

O$-$ carrying cost

Ss$-$ safety stock

LT$-$ lead time