XYZ is a company based in Cape Town. XYZ Imports printers from China and sells it to local corporate clients. Delivery normally takes 2 weeks. XYZ sells 5011 printers on average per year. Annual carrying costs is 21%. XYZ negotiated the purchase price per printer to be R304. Every time that XYZ places an order the fixed ordering costs per order is R1079.

1. What is the economic order quantity of printers of XYZ?

2. Assuming certainty in delivery and usage, at what inventory level should the firm reorder?

3. Assume a 230-unit safety stock is carried. What will the additional inventory cost be?