Tom Company produces smartphone and provides service. STN is a component that is used as a part of the smartphone. Each year 27.000 units of partSTN are used. Cost to place an order is $90 and the carrying cost is $6. They are used at the rate of 100 parts but some days as many as 130 parts are used. It takes 2 weeks from the time of order to the time of arrival of order.

Required:

a.) Calculate the EOQ.

b.) How many orders per year under EOQ policy?

c.) What is the annual ordering cost under EOQ policy?

d.) What is the annual carrying cost under EOQ policy?

e.) What is the total annual inventory related under EOQ policy?

f.) Calculate the reorder point.

g.) Calculate the amount of safety stock.

h.) Calculate reorder point with safety stock.